The Continuing Saga of the State Budget

Governor Schwarzenegger has made good on his threat to fire part-time workers and cut 200,000 full-time salaries down to the minimum wage. As that battle rages, Democrats and Republicans reportedly plan to help balance the budget by taking money from city and county governments. The money will have to be paid back in three years—with interest. But the borrowing means cuts in the meantime. We look at the consequences of cuts at the DMV and other agencies. Are political leaders once again putting off the day of reckoning? When will taxpayers be asked if they're willing to pay for the education, medical care and other services they demand?