Governor Announces $35 Billion Budget Shortfall

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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.
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Credits

Host:

Warren Olney

Producer:

Frances Anderton