The Path to California's Fiscal Crisis

Report Read time:
The Path to California's Fiscal Crisis

California has always been a trendsetter. What happens in California often pops up elsewhere. Which raises this question: Are the perpetual billion-dollar deficits that haunt California state government unique to the Golden State or the harbinger of what other states can expect?

The answer, analysts say, is that although most states are experiencing some of the same financial stress, California's woes are its own. At the same time, other states can take a cue from California's troubles.

The state's financial hole is so deep that voters will decide on May 19 six questions the Legislature put on the ballot as part of budget deal in February with Gov. Arnold Schwarzenegger (R) that closed a $34 billion deficit. But with revenues plummeting, the state might still be short $15.4 billion even with the deal — and $21 billion if voters reject the package. Schwarzenegger has threatened to lay off 5,000 state workers and 1,700 firefighters, shorten the school year by five days and release 38,000 prisoners if the ballot measures fail.

Like most other states, California is being hammered by the recession, but experts say the depth and intensity of the current downturn makes the situation there particularly tenuous. “Many other states do face the same kind of problems California faces, but California's problems are just so much more bigger and more complicated,” said Sujit CanagaRetna, senior fiscal analyst for the Council of State Governments.

Read the full report The Path to California's Fiscal Crisis on Stateline.org.

America’s Overdose Crisis
America’s Overdose Crisis

America’s Overdose Crisis

Sign up for our five-email course explaining the overdose crisis in America, the state of treatment access, and ways to improve care

Sign up
Quick View
America’s Overdose Crisis

America’s Overdose Crisis

Sign up for our five-email course explaining the overdose crisis in America, the state of treatment access, and ways to improve care

Sign up

MORE FROM PEW

A pair of white and black Adélie penguins standing in the middle of a clump of snow face opposite directions. Seeing Antarctic Change, Scientist Calls for Stronger Action
A shipyard with towers in the foreground, a barge on a river, and a blue sky in the background. Louisiana Primed to Take Helm of Offshore Wind Supply Chain
About a dozen people stand examining large blue bins full of whole fish in a warehouse. Some people are in green clothes, others in blue, and all wear ballcaps. A few hold clipboards. Reducing Risk Strengthens the Seafood Supply Chain
A worker in a seafood market dumps bright orange shrimp from a blue bin onto a bed of ice between a lot of other seafood laid out for sale. Other workers are visible in the background, as are the arms of shoppers placing orders from the other side of the ice bed. Seafood Industry Benefits From Greater Vessel Transparency
Composite image of modern city network communication concept

Learn the Basics of Broadband from Our Limited Series

Sign up for our four-week email course on Broadband Basics
Quick View

How does broadband internet reach our homes, phones, and tablets? What kind of infrastructure connects us all together? What are the major barriers to broadband access for American communities?

Pills illustration
Pills illustration

What Is Antibiotic Resistance—and How Can We Fight It?

Sign up for our four-week email series The Race Against Resistance.
Quick View
Pills illustration

Antibiotic-resistant bacteria, also known as “superbugs,” are a major threat to modern medicine. But how does resistance work, and what can we do to slow the spread? Read personal stories, expert accounts, and more for the answers to those questions in our four-week email series: Slowing Superbugs.