In a response to the state's pending budget crisis, Gov. Arnold Schwarzenegger urged all state agencies to plan for cuts in spending by 10% for the next fiscal year. The troubled housing market has exacerbated California's perpetual budget woes, along with a slowdown in the economy, and the Governor has been faulted for not taking action sooner. As the deficit is likely to reach $10 billion by next year, education, healthcare and transportation will most likely be affected, while layoffs and the elimination of many state programs are expected in the coming months.
* Elizabeth Hill, California Legislative Analyst
* Evan Halper, LA Times staff writer in the Sacramento bureau
* Senator Denise Ducheny, Chair of the Budget and Fiscal Review Committee
* Chris Thornberg, Founding Partner, Beacon Economics