Tough Budget Choices Faced by California and Other States

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Lawmakers around the nation have spent Tuesday in around-the-clock, grueling budget sessions as they face a tough time in painful cuts and other government shutdowns. The most dramatic negotiations unfolded in California in the middle of a $24.3 billion historic deficit.

California's budget mess is threatening to cause nationwide fallout because of the state's big-sized economy.

Gov. Arnold Schwarzenegger together with lawmakers tried to find some ways of cutting into the large deficit and, for the first time after 20 years, avoid the necessity of issuing IOUs. Pennsylvania, Mississippi, Connecticut, Ohio, Indiana, Illinois, and Arizona were among states racing against the clock in order to pass budgets which will avoid crippling circumstances.

Ohio House voted for a seven-day spending plan, allowing the state to continue its operation while budget talks continue – this is the first temporary budget that Ohio was forced to approve after 18 years. Meanwhile, Indiana narrowly averted large-scale government shutdown. In addition, neighborhood Illinois will likely start the new fiscal year even without a plan for delivering government services or paying its employees. The government will not really shut down just because it doesn’t have a budget, but lawmakers face the largest deficit in state history.

Gov. M. Jodi Rell of Connecticut signed an executive order that will keep government running without any two-year budget in place. She contends that average taxpayers wouldn’t notice the difference; however, leaders of towns and cities fear delays in state grants since it funds everything from local education to road repairs.

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Tough Budget Choices Faced by California and Other States

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