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FROM THIS EPISODE

The high-tech boom of the '90s led to both increased spending and tax cuts in Sacramento. When the bubble burst and revenues dropped, spending was still increasing. That produced deficits that rose to $38 billion. Gray Davis was recalled and Arnold Schwarzenegger elected in large part because of that deficit. California is still in the hole for $6 billion, plus $3 billion a year to pay interest on the money that was borrowed to narrow the gap. Governor Schwarzenegger claims Proposition 76 will end all that--not by raising taxes but by putting a cap on increased spending when revenues drop during economic hard times. Opponents say its spending limits will cut money for schools, fire-fighting, medical care and police work. We hear a debate.
  • Making News: The Orange Line Comes to the Valley
    New public transit is coming Saturday to the San Fernando Valley. The Orange Line features articulated buses running on rights of way planned originally for a subway. The Los Angeles Times- Caitlin Liu, who has been on three test drives, has more on the new transit line that opens tomorrow with free rides and several community events.

Metro Orange Line

Liu's article on the Orange Line

Proposition 76: State Spending and School Funding Limits

Yes on Prop 76

No on Prop 76

Prop 98 (Minimun School Funding, 1988)

Mendel-s article on fears about Prop 76

Producers:
Frances Anderton

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