California Budget Crisis Threatens Basic Services

(Photo by David McNew/Getty Images)

By karlibenoit on October 26, 2018

LOS ANGELES, CA – OCTOBER 09: An ambulance transporting a patient is reflected in the window of another ambulance at Ronald Reagan UCLA Medical Center on October 9, 2008 in Los Angeles, California. California State Treasurer Bill Lockyer has warned that California cash revenues will run out by the end of the month affecting law enforcement agencies, nursing homes and other services and government entities of approximately 5,000 California cities, counties, and school districts. A worldwide credit crunch threatens to derail state plans for a routine 7 billion dollar loan to even out the tax flow into the state treasury. Just two weeks after state lawmakers came to agreement, after months of haggling on a record-overdue state budget, California Gov. Arnold Schwarzenegger is warning of future cuts to the state budget to deal with skyrocketing financial problems. A frozen credit market and revenues for the first quarter of the fiscal year that fell more than a billion dollars short of previous projections are causing the governor and state legislative leaders scrabbling to deal with a new budget mess. (Photo by David McNew/Getty Images)

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