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July 2, 2009

California Fiscal Crisis Intensifies
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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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