California Budget Crisis
Problems in the 21st century are inevitable. Recession, budget crisis and many other problems are not new phenomenon. USA has not been spared either. Budget crisis are looming in this nation’s most populous and one of the largest economies of all times, California. In California, there are very large variations in the proposed amount to be used on the state and the available money. There are many questions behind the scene as to what is wrong with this USA’s driving economic engine. Debts are rising in hourly rates and this has aroused the attention of the federal government and most people.
Heated debates on this state’s budget are not a new phenomenon anymore. Many people stand to lose their jobs in the near future if something is not done on time. Most people are not happy with the state government’s decision to cut on spending. The government will halt some projects like road construction and repair, provision of resources to schools and other areas of interest. This means that there will be an alteration in provision of state amenities. Efforts have been made since 2003 to resolve these problems in California. It is encouraging that the budget has since grown with about 40%. However, there are more imminent problems for instance the current recession and global financial crisis. This is one of the limiting factors in California’s quest to recover from budget crisis.
Lack of cooperation between the state people and the largest political parties in the USA is plunging the budget crisis even deeper. There are even bigger problems. The republicans in California are not ready to embrace the proposal made. Democrats on the other hand refused to cut on government programs leading to a dead end. Nothing more can be done to reverse or solve this problem without the Republicans and Democrats agreeing accordingly. Actions plans and other problem solving strategies had to be put at bay as no action can be taken without active roles of both the republicans and the Democrats.
Recently, the Republicans refused to take the proposals on covering the deficit. Instead Republicans led by the state governor proposed cut on spending, increased taxes and borrowing of more cash to resolve the issue. This is being faced with controversy as many people stand to lose in one way or another. The request by the California government for support by the federal government has proved futile. California has to make the necessary arrangements to survive on their own. It is becoming hard for the provision of the public amenities as there is high demand for them and low taxes revenue.
Debates on how to provide amenities and at the same time to reduce spending are being done almost daily. According to some government officials, Californian people are addicted to spending and some thing has to be done. The latest developments state that some government offices are opened three times a day.
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