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GUEST: Jean Ross, Executive Director of the California Budget Project

In his fifth State of the State speech since taking office, California Governor Arnold Schwarzenegger yesterday addressed a projected $14 billion deficit for the next fiscal year and warned of the possibility of across-the-board cuts in services from education to health care. He proposed a constitutional amendment to keep the state from spending more than it collects in taxes. This is the second time he has made such a proposition. In 2005, voters defeated the governor’s ballot measure on spending caps. However, Schwarzenegger himself has contributed to the budget problem by supporting record borrowing in tough economic times and record spending during good times. According to Democrats and labor groups the real issue is Republican opposition to a tax increase.

For more information, visit www.cbp.org.