Budget Crisis Learn Essays

Budget Crisis

...tate California’s economy and the other side which feels that cutting back on education and health care is not relevant. To Californians health care and education are top priorities and we should not let the current budget crisis affect and demolish our system in helping provide for opportunity and care. It is not relevant for educators to lose their jobs or for people to who are seeking to build an education pay more for less. If students are being forced to pay more, than they should get their money’s worth in education. Although both side do agree that there has to be a budget cut somewhere to help keep California’s financial status in task. California’s budget has grown by 44 percent in the past five years. The economic boom of the late 1990s increased California’s budget. California’s budget is particularly unstable because it depends more on taxes especially personal income taxes that rises and falls with the business cycle. Because of the fundamentally increase income tax revenue California’s budget has grown by 44 percent since 1997-1998. The revenues from these sources climax at $17 billion, and dropped 66 percent in 2001-2002. The Legislative Analyst’s Office does not see or expect for these revenues to return to it’s peak level in the nearby future. I was able to research for this topic on the following websites and resources: -(California Budget Crunch Resource Center 17 March 2003. .) –(Brashear, David (August 1991) Government in Crisis: What Every American Should Know About the Federal Budget Deficit. Chesapeake River Press) -(Rasmussen, W. Scott (June 1985) Solving the Budget Crisis: Hope for America's Future. Pub Marketing Group.) It is understandable that the state government is going through a budget crisis and looking for ways to adapt and solve this issue, but state governors should take a hard look at revenue enhancements which can be discussed and resolve upon. Maybe the possible target on sales tax on services and maybe governors can also look at the potential saving in the state’s correctional system, which is a waste upon nonviolent offenders and which is up for only a 1% cut. Some solutions that are being proposed to solve this issue are many states are raising cigarette and alcohol taxes. Some have sought early access to funds they were awarded under the multiyear settlement with the tobacco industry. In California, Governor Gray Davis’s pro...

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