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California's biggest fiscal crisis since World War II got bigger today with Governor Davis- announcement that the deficit has reached a mind boggling $35 billion. That's 45% of this year's entire General Fund. The shortfall is the result of declining revenues, many from the technology industry, diminishing taxes from a weak private sector, and an economic recovery that has not yet materialized. In addition to a hiring freeze, midyear reductions and a ban on out-of-state travel, Davis said he'll have to propose new taxes in addition to massive cuts. We hear more about the state's money problems and the challenge facing the legislature from the Governor's chief fiscal policy advisor, Democratic Senator Gilbert Cedillo and Republican Assemblyman Keith Richman.
  • Reporter's Notebook: Senator Feinstein on Budget, Gangs
    California Democratic Senator Diane Feinstein is in Los Angeles today, meeting with Mayor Jim Hahn and federal officials in an attempt to secure additional funding for security enhancements at the Ports of Long Beach and Los Angeles. Tomorrow, she's scheduled meet with LAPD Chief William Bratton. Feinstein expresses her resolve to protect the nation's ports and cities- streets.

California budget

UCLA Anderson Forecast

Port of Los Angeles

Port of Long Beach

Los Angeles Police Department

Producers:
Frances Anderton

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