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California Fiscal Crisis Intensifies

HeadlineJul 02, 2009

In California, Governor Arnold Schwarzenegger has declared a fiscal state of emergency over a more than $26 billion deficit. Schwarzenegger has ordered state offices to close for three days a month. The state controller is expected to begin issuing “IOUs” to pay off bills as early as today. Schwarzenegger has sought to reduce the deficit entirely through major cutbacks to government programs, including welfare. He meanwhile has opposed several Democratic proposals, including new taxes on oil and tobacco companies.

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