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Ex-California Gov. Gray Davis On State's Crisis 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 — shares his thoughts on how California's Constitution has worsened the impact of the recession.

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Ex-California Gov. Gray Davis On State's Crisis

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Ex-California Gov. Gray Davis On State's Crisis

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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.