IOUs, service cuts and layoffs. California is the poster child of state budget crises. The state is currently facing a budget shortfall estimated at more than $26 billion.
Former Gov. Gray Davis — Arnold Schwarzenegger's predecessor and the loser of the 2003 recall election — talks to NPR's Guy Raz about how California's Constitution has worsened the impact of the recession. Among the challenges: State legislators need a two-thirds majority to pass a budget or increase taxes.