California State Budget Deficit Crunch

California State Budget Deficit Crunch

California State Budget Deficit Crunch

California State Budget Deficit Crunch

California has been a severe downtrend since the housing bust occurred.  With all those foreclosures in the state it killed off most of the revenues.  I think the Governator at this point has become ineffective like the President.

This is not the first time California has had budget problems. 3 months ago they did accounting tricks instead of facing reality and balancing the budget.  Unfortunately, revenues are still falling which is putting more strain on the state budget.  Now, the Governator is taking an extreme approach in an effort to get the lawmakers to pass a balanced budget.  He is ordering all state employees to take a paycut down to the minimum wage.

SF Gate:

Gov. Arnold Schwarzenegger has ordered the state controller to cut the pay for most state workers to the federal minimum wage of $7.25 per hour due to the lack of a budget being in place by the start of the fiscal year, whi...


Nikki Reed
Elisha Cuthbert