May 19, 2010
California’s Budget Crisis
As of now, the Californians are hardly discussing California’s current economy is on a downturn. According to California Legislative Analyst’s Office (LAO’s), the California’s current deficit is 24.3 billion dollars which mean one third of the California’s fund. California’s current economic influence, businesses have gone down. In addition, citizens have to deal with the fear and pressure of losing house and bankrupt because of unemployment, education for children, health care, and public services may be closed. However, California was the world’s eighth largest economic that has numerous of opportunities that inviting many of business climate. Then, what are the reasons that cause California into this mess that the people have to deal with every day? Well, the even that causes California has to deal with the current economic is because of California’s most serious budget crisis in history is caused by mistaken Proposition 13 in 1978, and the loss of money from taxes. As a result, Californians are facing many negative effects such as cutting budget in education, health care, and public services. In order to overcome this situation, the government needs to grow the economy to increase state’s revenues.
The event that begins the causes California into the current deficit is the mistaken of Proposition 13 in 1978. What is Proposition? Proposition is the act of offering or suggesting something to be considered, accepted, adopted, or done. According to Kevin O’Lerary, before the enaction of Proposition happen in the year of 1950s-60s “Governors Earl Warren and Pat Brown responded to the population growth of the postwar boom with a massive program of public infrastructure-the nation's finest public college system, the freeway system and the state aqueduct that carries water from the well-watered north to the parched south” (O’Lerary). Compare to now the earlier Proposition 13, the Californian have better life...