Jerry Brown Details California's Budget Shortfall During Sacramento Forum
What happened
Jerry Brown hosted a forum in Sacramento to discuss the State of California's budget crisis. He stated that the deficit over the next 18 months was likely worse than previously reported. Brown released figures showing that potential changes to the federal estate tax would cause a $2.7 billion loss, increasing the shortfall to $28.1 billion through June 2012. He pledged to work toward restoring the state's finances when he takes over from Arnold Schwarzenegger.
From cbsnews.com
Why it matters
The State of California faces a severe financial shortfall, which is partly driven by potential changes to the federal estate tax. The state lacks sufficient tax revenue to cover its spending commitments to schools, colleges, parks, and health care. This situation highlights the scope of the state's budget dilemma.
From cbsnews.com
Who's involved
- Jerry BrownHosted the forum and announced his plan to address the state's budget crisis.
- Arnold SchwarzeneggerThe governor Brown was slated to take over from.
- SacramentoThe location where the forum was held.
- State of CaliforniaThe government facing a crippling budget deficit and revenue shortfalls.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Los Angeles Unified School DistrictSpeculative
Funding access might be threatened as the state's budget crisis impacts commitments to schools.
- Stanford UniversitySpeculative
Higher education funding might be affected by state fiscal instability and tax revenue shortfalls.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- California's budget crisis limits policy options for Gavin NewsomCalifornia's deep budget deficit constrains policy priorities for Gavin NewsomLikely
- California budget crisis may limit economic development fundingCalifornia's budget crisis may limit economic development fundingPossible
- How could California's severe budget deficit affect Stanford University's operating environment?State fiscal crisis may strain higher education funding and economic stabilityPossible
- State budget crisis may reduce funding for LAUSDState budget crisis threatens funding commitments for LAUSDPossible
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The entities involved
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Jerry Brown
Governor of California from 1975 to 1983 and 2011 to 2019 (born 1938)
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Arnold Schwarzenegger
Austrian and American actor, bodybuilder, and politician (born 1947)
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Sacramento
capital city of the U.S. state of California and seat of Sacramento County