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(Studio) Govt. begins fiscal year with 1st budget surplus since 1960. California and Ohio legislature haven't approved new budgets nor authorized spending. Pennsylvania operating on month to month basis.
REPORTER: Harry Reasoner
(Sacramento, California) Senate Democratic minority leader, Jesse Unruh and Republican Governor Ronald Reagan defy each other and California has no fiscal budget. Reagan said wouldn't accept Democratic demand for more school aid. [UNRUH - says we've told people budget bound up with school financing and need for property tax relief, plus closing of property tax loopholes.] Could result in financial chaos. [REAGAN - blames lack of budget on assembly Democrats He'll return anything to legislature that isn't a year's budget.] [UNRUH - says only person frozen is Governor Reagan to $100 million for school aid which everyone calls inadequate.] [REAGAN - asks state employees to stand by California people unless sanity returns to irresponsible legislature] State employees volunteer to work; to be paid later.
REPORTER: Terry Drinkwater
- Drinkwater, Terry;
- Reasoner, Harry
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