August 10, 2011 Current Site Visitors ->
A December to Remember?
California set to collapse
|Los Angeles Times -- August 9
California tax revenues plunge, deep cuts to schools could be triggered
California's tax revenues plummeted in July, falling more than 10% below expectations and making it more likely that deeper cuts to public schools built into the state budget in case of a stalled economic recovery will occur.
Reuters -- August 10
Stock market turmoil a bad omen for California budget
The stock market's recent slump is reviving bad memories for California's government and raising concerns about revenue estimates for its budget, a perennial concern in the U.S. municipal debt market.
The concern in the state capital of Sacramento is the slump hints at the potential for a stock market meltdown like the one in 2008. That sent California's finances into disarray.
Heavy market losses could force California to trigger spending cuts to politically popular programs and revive calls for tax increases, both sure to spark rows in the legislature that cause many investors to stay clear of the state's debt.
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