California Government

December 4, 2012

Made in California legislation introduced

Senate Majority Leader Ellen Corbett has introduced legislation to create a “Made in California” program that would allow manufacturers to better market goods produced in Californiam=, according to a report in the
Sacramento Business Journal. Modeled after the successful “California Grown” program, which highlights agriculture products produced in California, the legislation would extend that marketing strategy to all goods produced in the state.

Filed under California Government, California Legislature, Manufacturing by

September 5, 2010

Governor Schwarzenegger leading Trade Mission to South Korea

Governor Arnold Schwarzenegger will be leading a trade mission to South Korea, next week,  from Sept. 12-16. The purpose of this trip is to showcase California goods and services, promote tourism and the expansion of trade between California and South Korea. The trip is being organized by the Los Angeles Area Chamber of Commerce and will be will be organizing a number of business opportunities throughout the trade mission to allow California companies participating in the mission to connect with key business and government decision makers.

South Korea is California’s 5th largest trading partner, a press release by the Chamber notes. It is one of the fastest growing economies in the world today. Its economy relies heavily on exports to prosper. The following are some of the sectors that the Korean market demands more products from: automotive, broadcasting, communication and computer technologies, cosmetics, pharmaceuticals/nutritional supplements, and environmental technology, education and training services.

Filed under Business Associations, California Government, South Korea by

January 13, 2010

California urban rescue team to deploy to Haiti

California will be sending a 72 member urban rescue team to assist with the humanitarian efforts in Haiti.   According to an AP report, California Task Force 2, organized by the Los Angeles County Fire Department, began getting ready shortly after the magnitude-7.0 quake devastated impoverished Haiti. The team includes firefighters, paramedics, emergency room doctors, search dogs and handlers, heavy equipment specialists and engineers trained in rescues from collapsed structures.

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January 12, 2010

California Budget – the five percent solution

This is from Governor Schwarzenegger’s press release about his proposed budget:

To achieve $1.4 billion in General Fund savings, Governor Schwarzenegger proposed 15 percent reduction in state personnel costs achieved by modifying employee compensation and reducing our workforce budget … as follows:
   *   Employees will be required to contribute an additional five percent towards their retirement costs;
    * An across the board five percent reduction in all salaries;
    * A five percent reduction in the cost of the state workforce payroll implemented by executive order S-01-10 requiring all department directors to reduce their payrolls by five percent.

This sounds a little too incremental for me.  Certainly most State employees can take a five percent hit – they have pretty good jobs, but this isn’t getting to the root of the problem.   What about eliminating Civil Service postions all together?   Put government workers under employment contracts instead – even generous ones.  Then they could stop paying pensions as well, something none of the rest of us get. 

Filed under California Government, Opinion by

June 24, 2009

California jobless rate hits 11.5 – biggest in State history

California’s unemployment rate climbed to 11.5 percent in May, the highest in modern record-keeping, the U.S. Department of Labor has reported. Last month, California lost 68,900 jobs, and in the past 12 months a staggering 739,500 jobs have disappeared from the state. If you include part-time workers seeking full-time work plus workers who have given up looking for traditional employment, the jobless rate could be as high as 25 percent, exceeding the national unemployment levels in the worst part of the Great Depression. Economists project that the layoffs will continue to rise at least through the end of this year and probably into 2010, even if the economy starts to recover.

Most of the cutbacks came from government: 11,400 job cuts in federal government and 2,800 from state and local agencies, as municipalities scaled back their services to cope with the crippling effects of tax declines and budget cuts. Adding to the decline in government employment, every major job category lost jobs in May except for education and health care, which added 2,100. Construction companies cut 11,300 positions; manufacturing, 10,400; professional and business services, 10,900; retail, wholesale, transportation and utilities, 8,300; leisure and information, 8,100; and hospitality, 2,700.

As shocking as these numbers are, what is even more shocking is that the State Government doesn’t seem to be doing anything about it, as they are mostly concerned with their own survival. Early indications are that the Obama administration stimulus money is going mostly to save the jobs of existing State workers and bureaucrats, who are already doing relatively well. Very little of the funding seems to be going into job creation, economic development or innovative programs to help small business.

Filed under California Economy, California Government by

June 16, 2009

U.S. refuses California emergency financial assistance

The Obama administration has refused requests for emergency assistance from senior State government officials. Calling California, “one of the biggest remaining threats to the economy” the Washington Post reported that top state officials have gone hat in hand to the administration, armed with dire warnings of a fast-approaching “fiscal meltdown” caused by a budget shortfall. Concern has grown inside the White House in recent weeks as California’s fiscal condition has worsened, leading to high-level administration meetings. But the Post reported that federal officials are worried that a bailout of California would set off a cascade of demands from other states. The administration is also concerned that California will enact massive cuts to close its deficit aggravating the state’s recession and further dragging down the national economy. After a series of meetings, Treasury Secretary Timothy F. Geithner, top White House economists Lawrence Summers and Christina Romer, and other senior officials have decided that California could hold on a little longer and should get its budget in order rather than rely on a federal bailout.

Filed under California Economy, California Government, California Politics, U.S. Government by

March 26, 2009

Huge demand for California bonds

The Sacramento business journal is reporting “huge” demands for California bonds: Investors were more enthusiastic about buying California debt than expected, putting in orders for $6.54 billion in general obligation bonds in a sale by the state Treasurer’s Office that ended Tuesday State officials had expected to sell $4 billion. The extra cash will allow officials to restart more stalled projects that were halted in December due to the state’s cash crisis. Treasurer Bill Lockyer’s office said there was “huge” demand from both individual investors and institutional buyers such as mutual funds. Officials have not determined which of 5,300 halted projects should be allowed to proceed. Until this sale, the tight credit market and the state’s prolonged budget crisis kept California out of the bond market for nine months.

Filed under Agriculture and Food, California Economy, California Government, Mergers and Acquisitions by

February 12, 2009

Wall Street Journal: “California’s Pain is Only Beginning”

The Wall Street Journal ran an article describing how thing might be getting pretty rough here:

As Sacramento squabbles over the state’s $42 billion deficit, Californians are getting a bitter taste of what’s to come after the steep budget cuts that are inevitable when legislators and Gov. Arnold Schwarzenegger finally hammer out a deal… “Before it gets better, it’s going to get a lot worse,” said Joseph Valentine, director of Contra Costa County’s Department of Employment and Human Services. The department, which administers social services such as food stamps, has cut 12%, or $25 million, of its budget. It has managers answering reception-desk phones, and Mr. Valentine expects another round of cuts… While Sacramento talks, money is drying up in places like Contra Costa County, where 40,000 families have applied for 350 available slots for Section 8 vouchers — a federal subsidy that allows low-income families to rent in the private market. “The level of desperation is just heartbreaking,” said Joseph Villareal, executive director of the Contra Costa Housing Authority.

Filed under California Economy, California Government by

February 11, 2009

Senator Yee Blasts UC for Latest Executive Pay Scandal

University of California President Mark G. Yudof apparently hasn’t been able to do much to curtail the culture of corruption that has gripped the UC since a series of outrageous scandals during his predecessor’s tenure. It has now been reported that another highly paid executive just left the UC’s Oakland office with a $100,000 severance check, then turned around and got a job down the street at their Berkeley Office for the same $200,400 salary. The executive aid who commands this high salary is Linda Morris Williams.  She had previously been awarded a $44,000 relocation allowance and a low-interest $832,500 home loan by then-UC President Robert Dynes. State Senator Leland Yee condemned the University of California in a opt-ed he wrote on Califoria Progress Report:

Clearly, there is a broken record at the UC. How many more scandals, oversight hearings, and new laws do we need to have before the University will finally clean up their act? It is truly unconscionable that they continue to mislead the taxpayers and students… There is absolutely no justification for these bloated salaries. The UC administration continuously violates the public trust by catering to the University’s elite rather than serving the students, faculty, and workers they are appointed to represent. The public deserves better from the UC administration.

Filed under California Government, California Legislature, University of California by

February 3, 2009

California now lowest credit rating in the United States

California has the lowest credit rating in the country after Standard & Poor’s cut its general obligation bonds one grade because of a record budget deficit, according to a report in the San Jose Business Journal we are now in worse shape then even hurricane ravaged Louisiana:

New York-based S&P said Tuesday it lowered the state’s $46 billion of full-faith-and-credit debt to A from A plus. The move bumps California down; it was previously tied with Louisiana. Gabriel Petek of S&P’s San Francisco office said the lowered rating “reflects our view of the state’s inability to reach an agreement on a mid-year budget revision and its rapidly eroding cash position.” California has had to delay $3.7 billion in some payments — including income tax refunds — because of the budget impasse.

Filed under California Economy, California Government, z9-Uncategorized by

January 26, 2009

California prepares to stop paying bills

The state of California has run out of money.  Facing a $42 billion budget deficit, State Controller John Chiang told the Sacramento Bee he has already borrowed $21.5 billion to try to cover the state’s checks, but by Feb. 1, there will be no more options left but to simply stop paying some of the bills – including tax refunds, welfare checks, student grants and other payments owned to California citizens.  “It pains me to pull this trigger,” Chiang said at a news conference. “But it is an action that is critically necessary.”  Federal law requires that many school and healthcare programs – a total of about $6.6 billion in California so Chiang has announced an expected payment freeze on $3.7 billion worth of the state’s bills, most of it refunds owed to taxpayers.   Even with the freeze beginning next week, the Los Angeles Times reports, California will still fall $346 million short for the month of February, forcing Chiang to consider issuing IOUs – something only done once since the Great Depression.

Filed under California Economy, California Government by

January 22, 2009

California in State of Undeclared Bankruptcy

California is in a state of “undeclared bankruptcy,” Assemblywoman Diane Harkey said after Gov. Arnold Schwarzenegger delivered a truncated State of the State address:

“I will not give the traditional State of the State address here today because the reality is that our state is incapacitated until we solve the budget crisis. The truth is that California is in a state of emergency,” Schwarzenegger told a joint session of the legislature on January 15.

Harkey said she was happy to hear the governor’s blunt words, delivered in just a 12-minute speech. “I am encouraged by the governor’s commitment to find a bipartisan solution to our budget crisis,” said Harkey (R-Dana Point). “We must have the political courage to implement real changes to our state’s debt financing practices. Living within our means and establishing reserve requirements just like we did when I was mayor of Dana Point should not be foreign concepts to lawmakers. These fundamentals are essential to turning around California’s ‘undeclared bankruptcy’ as we
can no longer borrow.”

Filed under California Government by

January 6, 2009

More Californians asking for public assistance

As the California economy continues to deteriorate, low- and middle-income Californians are finding it increasingly difficult to make ends meet, according to a report released Monday by the nonpartisan California Budget Project.

They are turning to public programs in growing numbers — at a time when state policymakers have proposed deep cuts to health and human services programs to close the state budget gap. The number of food stamp applications jumped 33 percent between September 2007 and 2008, but rising food prices mean the assistance doesn’t go far enough. The number of families on welfare cash assistance grew by almost 27,000 over the same period.
A Democratic budget proposal would suspend a cost-of-living increase for cash assistance for welfare recipients to save $100 million. A Republican counter proposal would cut the COLA, limit eligibility for assistance and cut cash grants by 10 percent, for a savings of $1 billion.

“We are at a time of extraordinary stress not only on our (state) budget, but on California families,” project director Jean Ross said in a press call reported by the San Jose Business Journal. Not only are more individuals and families applying for assistance, a “very different type of family” historically a couple of steps up the income ladder is asking for help because of rising food costs and rising unemployment, she said. The current budget proposals will put more families at risk, Ross said. “Every dollar that doesn’t go to a family doesn’t go out into the local economy.”

Filed under California Economy, California Government by

November 24, 2008

California announces electric car network partnership

California and Bay Area Officials have announced plans for a $1 billion network of electric car recharging stations for the San Francisco Bay area highways with a goal of greatly expand the number of electric vehicles on the road. A private company – Palo Alto-based “Better Place” along with San Francisco Mayor Gavin Newsom, Oakland Mayor Ron Dellums and San Jose Mayor Chuck Reed announced the deal, which sets out to install charging stations in homes, businesses, parking lots and government buildings by 2012. The company said it will also build mechanized battery swapping centers where robots will remove and replace the batteries in cars that are compatible with the system. These stations will allow electric car drivers to travel longer distances without recharging.

The initiative would make the Bay Area the first region in the U.S. to create an electric car network.
Gov. Arnold Schwarzenegger on Thursday supported the deal, which the company hopes to someday take statewide. “This type of public-private partnership is exactly what I envisioned when we created the first-ever low carbon fuel standard and when the state enacted the zero emissions vehicle program,” Schwarzenegger said in statement. “This partnership is proof that by working together, we can achieve our goals of creating a healthier planet while boosting our economy at the same time.”

The company also unveiled a prototype electric Nissan Rogue SUV, the second prototype developed
under Better Place’s partnership with automakers. Better Place has already struck similar deals with Israel, Denmark and Australia to create electric vehicle infrastructure in those countries.

“We put in the infrastructure, and the big carmakers make the electric cars for us,” said Joe Paluska, the company’s head of policy and communications. “This is an opportunity for California to apply its strength in technology and innovation to Michigan’s manufacturing might,” he said. “We now
need a strong national policy set by the new administration to help the U.S. revive its auto industry and it’s economy.” Until now, the knock on most electric vehicles is that they were prohibitively
expensive because the batteries cost $10,000 or more. Paluska said the new prototype vehicles solve that problem — the replaceable batteries in the prototype cars would be owned by the company, not the consumer. Better Place would charge drivers a subscription fee to use its recharging facilities.

As their part of the deal, the mayors vowed to help streamline local permitting and regulations to hasten the installation of hookups in the region, and to provide incentives for local businesses to install charging outlets for employees. “Our goal is to make the Bay Area — and eventually California — the electric-vehicle capital of the world,” Newsom said.

Filed under California Government, Energy Industry, Environment and Climate by

November 23, 2008

CalPERS cuts 80 private equity funds

CalPERS has sold 80 private equity partnerships with a net asset value of $2.1 billion on the secondary markets, according to a report in Pensions and Investments

Leon G. Shahinian, senior investment officer, alternative investment management group, said in an interview that the $189.9 billion California Public Employees’ Retirement System, Sacramento, eliminated 60 partnerships from its alternative investment management program in July and August, he said. UBS assisted in the selection and sale of the private equity fund interests. Mr. Shahinian wouldn’t identify the funds or give selling prices. But according to CalPERS’ June 30 Alternative Investment Management Program Fund Performance review, funds missing from the June 30 list that had appeared on a year-end list run the gamut from buyout to venture capital to a few distressed debt funds and include the following: Technology Partners Fund VII, Thomas Weisel Capital Partners LP, Ticonderoga e-Services Fund II, TL Ventures V, Weston Presidio Capital IV, EuclidSR Biotechnology Partners, JPMorgan Partners Global, Thomas Weisel Global Growth Partners B, Thomas Weisel Strategic Opportunities, Provender Opportunities Fund II, Thomas Weisel Global Growth Partners II, Thomas Weisel Healthcare Ventures, Alta California Partners Fund II, Kohlberg Investors V, OCM Opportunities Fund V, OCM Principal Opportunities Fund III, Paladin Homeland Security Fund, Palomar Ventures III and Belvedere Capital II.

London-based private equity research firm Preqin estimated that funds sold for $2.1 billion in late 2007 in the secondary market — which trades private equity stakes between the pension funds and endowment funds that want to exit or buy. Preqin determined that the net asset value of funds sold equates to 9 percent of CalPERs overall portfolio, and calculates the remaining value of its private equity portfolio at $21.5 billion.

Calpers didn’t confirm Preqin’s calculations. The pension fund said it couldn’t specify how much more it gained from the sale in 2007, when the market was peaking, than if it had tried to sell it today.
But Leon Shahinian, Senior Investment Officer at CalPERS private equity program, said via an email from CalPERS spokesman: “In today’s market, we would have had hundreds of millions in losses.”

The pension fund said that its strategy dated back to late 2005, when its Alternative Investment Management program (AIM) presented a strategic plan to the CalPERS Board to lessen the administrative burden of having so many funds to oversee, and to optimize long-term private equity performance. In 2006, it hired UBS Investment Bank to scrub its private equity portfolio and develop a list to sell. At that time, it had investments in several hundred funds.

The inital sale of the $2.1 billion assets — which were sold in the secondary market and not all in one go — was in the third quarter of 2007, when the Dow was ranging between 13,000 to 14,000.
CalPERS said there were 80 partnerships in this portfolio and 60 different general partnership relationships, diversified over various private equity sectors such as venture capital, distressed, buyouts, etc. Sales were completed in the fourth quarter of 2007.

Filed under Banking and Financial Services, California Government, Venture Capital by

October 6, 2008

California seeking $7 billion emergency loan from Federal Government

California may be the next domino to fall in the global financial meltdown, and it has gotten surprisingly little attention. Because of the credit crises, the State my had difficulty arranging financing for the bond sales it uses to generate cash flow to run the government. Governor Schwarzenegger has written a letter to the Secretary of the Treasury, Henry Paulson, advising him that California may need a $7 billion emergency rescue loan from the Federal Government. State Treasurer Bill Lockyer warned that the State’s cash revenues will dissipate completely by the end of the month, and the state’s 5,000 cities, counties, and school districts will face job layoffs and payments for law enforcement agencies, teachers, nursing homes and an array of other services and government entities could soon be suspended.  As reported in Financial Times:

California’s economy, which would be the eighth biggest in the world if the state was a separate country, is teetering on the brink of a financial crisis intensified by the credit crunch. California is weeks away from running out of money. In a letter to Hank Paulson, the US Treasury secretary, Arnold Schwarzenegger, California’s governor, last week admitted an immediate $7bn was needed to pay for essential public services, such as police and fire-fighters.

California would normally generate interim funding by issuing “revenue anticipation notes” in the short term credit markets to tide it over until tax revenues arrive later in its financial year. But the door to the credit markets is firmly closed.   Other states are also suffering from poor economic conditions and declining tax revenues.

Florida, Nevada, Massachusetts and Ohio have dipped into their reserves  to maintain spending, according to Robert Kurtter, managing director of Moody’s US public finance group. But he said California’s situation was unique as it often relied on the capital markets to maintain spending commitments.  “When you have that dependency year-in-year-out you are going to get caught out when the markets are disrupted,” he said. “And that’s exactly what happened.”

Unlike most other states, California does not have a reserve fund and because it depends heavily on capital gains tax and stock option realisations, its revenues can be volatile. The looming cash flow crunch has caused considerable alarm.  “We are two weeks or so away from not being able to pay teachers and fire-fighters,” said Ross DeVol, director of regional economics at the Milken Institute, a Los Angeles-based think-tank.

Passage of the $700bn bail-out bill last week may not have solved the state’s immediate problems. “If we could get through the next two or three weeks without another financial institution being taken over that might restore confidence in counter-parties. But I don’t think the bill will free up the credit markets in the near term.”

Bill Lockyer, California’s treasurer, said immediate cash needs could be met with as little as $3bn.  But to end its reliance on the markets, California must first become better at balancing its budget, said Mr Kurtter. “Typically, when entities get into trouble it begins with cash flow. And when you are chronically running budget deficits, your cash is going to dry up.”

Filed under California Economy, California Government, U.S. Government by

October 2, 2008

California to attend CeBIT and launch Germany-California ICT Summit

California will be officially represented at CeBIT, a trade show for information and communications
technology (ICT) that will take place in March 2009 in Hannover, Germany.  According to Governor Schwarzenegger’s press release:

Governor Arnold Schwarzenegger today announced California will be the first state to be the official partner of CeBIT, the world’s largest trade fair for digital business solutions and information and communications technology (ICT). In previous years, CeBIT has partnered with other nations
including the United States, France, Russia, India and Canada. As the Partner State, California businesses will be highlighted above all others, providing a great opportunity for business matchmaking and networking for California businesses “I am excited to officially announce that California will be the 2009 CeBIT partner state, a role previously reserved only for nations, and we look forward to demonstrating California’s global leadership in information communications technology,” said Governor Schwarzenegger. “Not only does CeBIT provide California with a venue to showcase our innovative spirit, it is a tremendous opportunity for California companies looking to promote their
products in the global marketplace. I urge businesses across California to showcase
their innovation at CeBIT 2009.”

At CeBIT 2009, California will spotlight the state’s innovative ICT technologies in several key industries including green IT, entertainment, Internet-based services, TeleHealth, security, consumer
electronics, digital content generation and distribution, aerospace, and research and technology. The star attraction of the Partner State program will be the Germany-California ICT Summit. The two entities will use this opportunity to step-up collaboration and stimulate more bilateral business. “It is fitting that we are in the Silicon Valley today since it is a major source of global information, communications technology and venture capital. The region has garnered a lot of well-deserved attention over the years,” said Dale E. Bonner, Secretary of California’s Business, Transportation & Housing Agency. “But there are also many other innovative information and technology companies located in places like Los Angeles, San Diego and regions throughout California
that will play an important role in CeBIT 2009.”

Filed under California Government, Governor Schwarzenegger, Information Technology by

February 25, 2008

California Budget Deficit is up to $16 billion

California’s budget deficit has risen to an eye popping $16 billion. What seems to be going mostly unreported in this, is that Governor Schwarzenegger has been repeatedly wrong in his budget projections. Wasn’t that one of the major reasons we recalled his predecessor? We haven’ t heard the last of this- not by a long shot. As reported in the San Diego Union:

California’s nonpartisan fiscal watchdog on Wednesday said the state’s budget shortfall has grown to $16 billion and offered an unprecedented and competing plan to close the gap by imposing both spending cuts and tax increases.

Legislative Analyst Elizabeth Hill said Gov. Arnold Schwarzenegger’s proposal for the 2008-09 budget year is flawed because it fails to set funding priorities and correct the state’s chronic imbalance between spending and revenue. “A decline in revenue means we have a larger shortfall than the governor projected,” she said. “Our recommendations will affect all Californians in some way. However, we think that will benefit all Californians in the long run.”

Last month, Schwarzenegger pegged the shortfall at $14.5 billion through June 2009. A continuing decline in the housing market that has created ripple effects throughout the economy has contributed to a sharp drop in tax revenue. Hill criticized the across-the-board budget cuts to most state agencies that Schwarzenegger proposed. Instead, she called for targeting and eliminating nonessential state services and raising tax revenue by cutting personal and corporate tax credits for families, businesses and motorists. She also advocated a higher gasoline tax.

Filed under California Government, Governor Schwarzenegger by

December 14, 2007

State budget deficit now $14 Billion, Governor plans across the board cuts

Just four months ago in August, Governor Schwarzenegger submitted what he called a “balanced budget” to the State Legislature. Apparently his projections were pretty far off, as State finance officials have now determined that the state is facing a $14 billion deficit over the next 18 months, even more than the $9.8 billion projected by Legislative Analyst Elizabeth Hill. As reported by the Sacramento Bee:

Faced with what his staff now estimates as a $14 billion budget hole, Gov. Arnold Schwarzenegger has decided to seek across-the-board cuts to state operations. The administration last month asked departments to prepare hypothetical budgets based on 10 percent reductions for the fiscal year beginning July 1 in case such a move was sought. But now, as the fiscal outlook has worsened, the Republican governor has decided to go forward, according to advocates for social services and local government the governor has summoned in recent days for budget discussions. “Our goal is to be able to spread this as equitably as possible,” said Department of Finance spokesman H.D. Palmer, who would not say what percentage cut the governor will seek or whether it would apply to current year spending.

Schwarzenegger is planning to ask the Legislature for a 10 percent across-the-board reduction in state spending next year, according to sources who have met with the governor this month. The 10 percent figure is a target for all departments, intended to impact every sector of state government equally, the governor told social service advocates this week. Schwarzenegger remained resistant to new tax increases, however, insisting that not enough support exists among legislators and voters.

Filed under California Government, California Politics, Governor Schwarzenegger by

November 15, 2007

California’s Budget Deficit Skyrockets To $10 Billion

California’s budget situation has deteriorated since the summer and the State is now facing a massive $10 billion revenue shortfall, according to state’s legislative analyst Elizabeth Hill. Her report, made to the legislature said the current fiscal year budget situation had worsened by $6 billion since its passage in August, wiping out a hoped-for $4.1 billion reserve and leaving a $1.9 billion deficit. Turmoil in housing markets and the slowing economy that caused a drop in property taxes, was the reason for the shortfall, but the report also noted that forecasted revenues from Indian casino compacts were over optimistic and would be delayed.

When Governor Schwarzenegger signed the state’s current spending plan in August, he called it “a balanced budget”. Even before then, however, the slumping housing and credit markets had begun cutting into state tax revenue and threatening to make next year’s budget even worse. Economists had warned that thedecline in new home sales and construction, layoffs and bankruptcies in the mortgage-lending industry, and a volatile stock market were erasing revenue that lawmakers thought would materialize to cover California’s $145 billion budget.

“Knowing the challenges that we face, throughout the fall, my administration has been examining a variety of options to close next year’s budget gap,” Governor Schwarzenegger said in a statement. ” I have not made any final decisions yet, but it’s clear that the decisions that will be involved will be tough.”

Filed under California Economy, California Government, California Legislature, Governor Schwarzenegger by

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