If State Demands City Funds, City Will Have the Money Schwarzenegger’s recent proposal to borrow $2 billion from local governments has angered cities and counties, including the city of Sacramento. The proposal aims to help the state cope with its budget deficit -- the latest number for the state’s deficit is $24.3 billion. At first, Sacramento reacted to the state proposal with alarm. But Mayor Kevin Johnson’s recent comments indicate that the city’s fears have somewhat dissipated. The cit... KathleenHaley