Sounds of the 2008-09 California Budget Crisis

By 2008, California was in a budget crisis similar to the one in the early 2000s that led to the recall of Governor Gray Davis and his replacement by Arnold Schwarzenegger. In these clips we hear radio ads early in the budget process designed to press the legislature not to cut certain programs. Governor Schwarzenegger laments lack of spending priorities, raids on special funds, and lack of a rainy day fund. He indicates he is against a tax increase. Subsequently, after a long overdue budget, rumors appear that he will propose a sales tax increase. On a radio program interview, the governor retorts that charges that he has not been sufficiently focused on the budget is right-wing nonsense. He urges compromise. Schwarzenegger later did propose a tax increase but he could not get support from Republicans in the legislature. Although Republicans are a minority in the legislature, there is a requirement of 2/3 to pass a budget so the tax increase was defeated and a budget was signed without one. By late October, word was leaked that there would need to be a special session of the legislature since the newly-enacted budget was significantly out of balance.

Category:

News & Politics

Tags:

• California
• budget
• Schwarzenegger
• fiscal-policy
• deficit