California Budget Cuts

May 30, 2009 4:55:58 PM PDT
Needing to close a 24,000,000,000 dollar gap the proposed cuts are deep, hitting the disabled, eliminating health care for nearly a million poor kids. In Los Angeles summer school has been cancelled. Dr. Susan Careleo, Los Angeles Valley College said, "We don't have the funds from the state to pay for the classes."

The state doesn't have enough money to pay its workers either. They could face another pay cut and more than 200 parks could be closed, including the governor's mansion.

Denida Rodriguez with California state parks said, "They'd be off limits to the general public coming in:"

The problems brought on by the recession are being felt across the country, what's unique in California is the inability to deal with it.

Economists blame proposition 13, passed overwhelmingly by voters 30 years ago it capped the amount property taxes could be raised and mandated a nearly- unachievable 2/3 vote of the legislature to raise any state tax, meaning California is left to rely disproportionately on the income tax which drops sharply during a recession.:

Prof. John Ellwood, U.C.Berkeley said, "We want lots of thing, we want it all, but we have put in place a decision-making system that prevents us from raising revenue to pay for that, that's the problem."

A problem that so far has stumped the one time action hero governor.

Arnold Schwarzenegger. California governor said, "There's basically when it comes to revenues a freefall right now. We don't know where this is going to stop."

Economists say without new taxes or a change in the economy, the golden state will have a hard time restoring its luster.

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