California’s latest $20 billion mess is official, now how do we get out of it?
Most Californians knew this day was coming even as the Legislature and Governor were congratulating themselves on closing a $25 billion budget deficit last June—a new gap, by some estimates as big as $21 billion, will confront the state’s budget over the next six months. Gov. Schwarzenegger unveiled his budget plan today that promises to close the deficit without any tax increases but will impose pay cuts on state workers and cut the budgets of the state’s prisons and schools systems. Is there any way to break the consistent cycle of deficits?
Ana Matosantos, director of the California Department of Finance