- The Schwarzenegger Administration details its proposals to resolve the state’s budges crisis.. The Governor’s Finance Director wants $2 billion in midyear budget cuts, including $440 million from health and human services and $159 million from higher education. The Governor also wants the authority to declare a fiscal emergency and make unilateral cuts that the legislature could block only by a two thirds vote
- The Alameda County Board of Supervisors unanimously approves a half cent increase in the sales tax to raise funds to keep public hospitals and clinics open – voters must give the measure a two thirds margin of approval on the March ballot
- Berkeley City officials back off a plan for a parcel tax increase – the decision leaves the city council with only layoffs and service reductions to close an $8-10 million budget deficit
- The Senate gives final approval to a massive re-write of medicare including a prescription drug benefit – but opponents immediately introduce legislation to repeal many of the bill’s most contraversial provisions
- Striking grocery clerks in southern California expland their picket lines to the northern and central parts of the state
- The US Economy grows 8.2% in the 3rd quarter, the largets quarterly growth in nearly 20 years