SAN FRANCISCO - California counties, which depend heavily on state funding for social services, lost about $3 billion in the budget deal that Gov. Arnold Schwarzenegger signed earlier this week, according to the California State Association of Counties.
The hit will require the counties to reopen budgets that were agreed to with difficulty earlier in the year. The budget package relied on a variety of local revenues and cuts in state funding for local governments as part of a plan that closed a state budget deficit of about $24 billion. Schwarzenegger used his line-item veto power to cut another $500 million from the budget this week.