With all the budgets of the states combined (excluding New York), California’s budget surpasses them all. The unbelievable deficit of $34 billion is divided into three components, 45% of it originating from the 2002 - 2003 general funds. When broken down, 51%, which is said to be $17.7 billion, comes from the Revenue Loss. This also includes, personal income, and sales and corporation taxes. About 36% or 12.6 billion is due to the “One-Time Solutions”, the funds and cuts used in this year’s budget and including borrowing aga

inst the tobacco settlement (which might not be available in 2004). Finally, the other $4.5 billion from mandatory expenditure increases, which includes the Proposition 98 (education spending), that resulted in the loss of anticipated federal funds. The breakdown of the deficit explains the reason why California is experiencing a serious “Budget Crisis”.

If re-elected into office as governor, Gray Davis could take this matter into is own hands once again and fix it. His proposed plans are heading in the right direction towards curing the budget crisis. One of his first steps in lowering the deficit is the spending cuts, which is a good start. If Davis is recalled and another candidate is elected, there are a few that seem to be fit for the job. McClintock has a set plan for the budget crisis and plans on solving it in “three easy steps”. He feels that this state has all the answers to solve the budget crisis, but no one is taking any action to do so. Schwarzenegger believes in setting “limits” on annual spending increases. He supports a constitutional requirement that the state pass a balanced budget, that way California will never

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