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Golden State fever

By Peter Schrag

The great state of California is desperately ill: it has a chronic disease that’s been ravaging it for more than thirty years. This year’s symptoms include: a $26 billion, two-year budget deficit; a string of sudden multi-billion-dollar cuts to schools, welfare, and health services; and the possible elimination of the state’s college-scholarship program. In June, Governor Arnold Schwarzenegger threatened to shut down the government if the legislature—meaning its Democratic majority—didn’t approve the combination of budget cuts and other reforms he demanded. In July, the state controller declared that California was about to run out of cash and began issuing IOUs to its creditors, followed shortly by the announcement from major banks that they wouldn’t honor them.

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SEE ALSO: Schwarzenegger, Arnold; Budget deficits; Career as California governor; Debts, Public; Government policy; Illegal aliens; Real property tax; Referendum; Tax and expenditure limitations

Response: December 2009, page 4

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