In Calif., Deficits Could Spur Taxes, Program Cuts California faces the largest budget deficit of any state. It is now estimated at $42 billion over the next 18 months. That means severe cuts in state programs, major new taxes, or, according to Gov. Arnold Schwarzenegger, both.
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In Calif., Deficits Could Spur Taxes, Program Cuts

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In Calif., Deficits Could Spur Taxes, Program Cuts

In Calif., Deficits Could Spur Taxes, Program Cuts

In Calif., Deficits Could Spur Taxes, Program Cuts

  • Download
  • <iframe src="https://www.npr.org/player/embed/98348273/98348218" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

California's budget deficit is now a projected $40 billion over the next 18 months.

Gov. Arnold Schwarzenegger is in a standoff with a recalcitrant legislature. The big debate is which is worse cuts or increased taxes. The governor wants to do both.

John Myers reports for member station KQED.

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