California faces a $24.3 billion deficit. Soon, the Golden State may not able to pay its bills.
Should California tax or cut? It’s an age-old question. Schwarzenegger vows to hold the line on new taxes, leaving only deep program cuts as the way to solve the state’s financial crisis.
Who’s going to be hurt? As usual, the brunt will be born by the poor, the powerless, the young and the old. The have-nots soon will have even less. Here are some of the controversial proposals on the table:
Shorten the school year
Eliminate California’s welfare-to-work program
Eliminate the Healthy Families program (for low-income children)
Cut legal aid attorneys for the indigent
Cut home health aid for the elderly
And so on. (To learn more, here’s a video of Schwarzenegger’s recent speech on the budget crisis.)
Californian Democrats opposed such deep program cuts. Republicans in the state oppose new taxes. It’s the classic ideological divide.
Maybe you don’t live in California and the state’s financial problems seem far away. But all states are struggling with financial crises. And in times of uncertainty and crisis, legislators in one state take cues from what happens in other states.
Do you support program cuts as the solution? Why? Do you support raising taxes? What would you want done in your state?
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