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FROM THIS EPISODE

On this day in 1994, Orange County went bankrupt. It all sounds like ancient history, until you hear what it's still costing for trash collection, redevelopment, transportation and parks. The same voters who refused to increase their taxes are saddled with $800 million of bonded debt for the next 10 years. Now, seeds of the same kind of collapse are sprouting in Sacramento. Will other counties--and California itself--go the same way if voters refuse to pay for the services they demand? Is there a silver lining? We look at the lessons of the biggest municipal failure in American history with Mark Baldassare of the Public Policy Institute of California and Orange County Register business columnist Jonathan Lansner.
  • Making News: Don Perata Sworn in as Senate President Pro-Tem
    The new Democratic leader of California's State Senate says he wants to work with Governor Schwarzenegger. But the Governor has plans to challenge legislative powers, and Oakland Senator Don Perata may have skeletons in his closet. Barbara O'Connor, professor of communications at Sacramento State University, is optimistic that partisan political debate will give way to positive restructuring in Sacramento.
  • Reporter's Notebook: Cal Gets Holiday Instead of Roses
    UC Berkeley football players are frustrated and angry. Ranked the number 4 team in the country, instead of playing in the Rose Bowl against Michigan on New Years Day, they'll be in the Holiday Bowl on December 30--against 23rd ranked Texas Tech. Ray Ratto, sports columnist for the San Francisco Chronicle, has more on the Bears, the Bowls and the Polls.

California Legislative Analyst on California economy and budget

Senator McClintock on state budget, taxes

Orange County, California

California budget

Economic Recovery Act (Prop 57, 2004)

Lansner's article on OC bankruptcy, Bob Citron

Cal Bears on Holiday Bowl

Holiday Bowl

Bowl Championship Series

Ratto's article on Cal Bears, Bowl Championship Series

CREDITS

Host:
Warren Olney

Producers:
Frances Anderton

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