The Fiscal Problem of California

The financial problems which California faces isdeficit of about $24 to 428 billion dollars, and this
one that has been in the spotlight recently, forstarted the whole reason for the marathon
the current month the credit rating was cut to alegislature. The general budget fund for the state
lower investment grade. And because of facingis about $100 billion dollars, and the deficit was
the imminent issue of bankruptcy the governorsboth complete and qualified. The last time the
and legislators took drastic action of selling somestate was on top of its game was in the fiscal
very valuable state owned land, released aboutyear of 1998 to 1999, but there are a number of
28,000 thousand prisoners and they also cut thedifferent reason put forward to shed some light
state University budget by roughly twentyon the issue of the states misfortune.
percent. And right now the state has obligatedThe structure of the states tax is one of the
the 243,000 thousand workers three days out ofmain factors of this misfortune, the act of the
each month.proposition 13 was implemented some time ago
In this day and age the state of California has theto put a cap on the rising of property taxes. And
lowest credit rating in the whole of the Unitedfor some various reasons the state has started
States. The last fiscal year was one to expect ato depend on its great margin of income.