California Goes Budgetless in Election Year Deadlock
In Sacramento the state faces a new fiscal year without a budget as Democrats push for a $6.59 billion balanced plan and insist Reagan sign a budget. The impasse centers on local aid, school funding, and pay for prison staff, with GOP criticism of Democratic leadership and Lt. Gov. Reinecke noting vacationing during key decisions.
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Moynihan warns Congress on welfare reform plan
White House adviser Daniel Moynihan urges pass of a comprehensive family assistance reform. He warns that without a federal cash floor for poor families the nation faces a downward social spiral. He cites a potential $1600 annual basic benefit plus food stamps and a sliding earnings scale, with action unlikely before July 31.
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