Sacramento Bee's Dan Walters reports on Governor Schwarzenegger's continuing struggle to reform big pensions as the State Legislature prepares the upcoming budget package.

Click Here to read the article.

Wall Street Journal opinion piece by David Crane, Special Advisor to Governor Schwarzenegger, on the undisclosed pension costs of SB 400, passed in 1999. Based on unrealistic projections of economic performance, the bill once touted to "not cost taxpayers a dime" has already cost them $15 billion and potentially billions more in the years to come.

Click Here to read the article.

California Controller John Chiang predicts that even though the state faces a record $20 billion shortfall right now, the real pain will begin in 2012. Growing pension and health care obligations will increase pressure on the budget at the same time that debts to local governments come due. Chiang places the blame for the state's predicament on poor planning.

Click Here to read the article.  Read more >>

In 2009, California's revenues from state taxes declined by 13.94%, far exceeding a drop of 8.6% nationwide. Even though, the Legislature approved the largest state tax increase in history last year, the tax increase failed to translate into actual revenue with tax collections down by $16.4 billion.

Click Here to read the article.  Read more >>

This editorial from the Orange County Register explains how the state government has knowingly brought California within inches of bankruptcy. Even the governor's attempts to enforce cuts have failed to slow the outrageous spending habits of the state government.

Click Here to read the article.  Read more >>

The blog, CaliforniaCityNews.org has posted a link of the letter to the governor from state controller John Chiang, which explains that if the state does not change its spending habits it will be out of money by tax day.

Click Here to read the article.  Read more >>

Bloomberg.com reports that California may delay paying some of its bills in March 2010 because its cash reserves are running low. Though, tax revenues should allow the state to meet some of these short-term bond obligations in the following months, they won’t help California’s credit rating, which is the worst of any state in the union.

Click Here to read the new story.

Writing in the Sunday Sacramento Bee, editorialist Dan Walters predicts that California’s budget crisis will not be solved anytime soon. Both Democratic and Republican leaders are likely to reject Governor Schwarzenegger’s fiscal plan, which Walters characterizes as fantastical and disconnected from reality.

Click Here to read the editorial.

As the Sacramento Bee reports, Schwarzenegger has declared a "budget emergency" for California. His plan of action includes no tax hikes, but substantial cuts to state employee salaries.

Click Here to read the article.

This special report from Capitol Weekly gives an overview of the governor's State of the State address, which will take place on the 7th. Ignoring the actual cause of California's debt (state pensions), the governor may be proposing tax extensions and increases in addition to massive program cuts. This is a blatant disregard for the will of California voters, which clearly rejected tax increases proposed last May.  Read more >>