George Deukmejian became governor of California in Jan. 1983, inheriting a budget crisis from outgoing governor Jerry Brown. Deukmejian would not raise taxes (although he did allow various revenue enhancements through closing of "loopholes). A stalemate over the budget erupted in July 1983 when the state began its fiscal year with no budget in place. However, budget pressures were basically relieved as the economy recovered. When he was up for re-election in 1986, Deukmejian could claim to have taken the state from "IOU to A-OK." By the end of his second term in 1990, however, things were no longer A-OK. The end of the Cold War and the resulting squeeze on military spending - combined with a national recession - created a new budget crisis and stalemate, inherited by Deukmejian's successor, Pete Wilson. These three news clips illustrate the crises that characterized the start and end of the Deukmejian years.
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