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California Passes Budget But Relief Is Only Temporary

Publication Date: 2/25/2009
Author: Robert Carlsen in Sacramento
Format: HTML

California was poised to lay off 10,000 employees and pull the plug on 275 transportation infrastructure projects when a divided Legislature in the early morning hours of Feb. 19 approved a new budget that plugs the state’s $41-billion deficit. However, the fiscal relief is temporary. The state is still teetering, and it could be several weeks before the Dept. of Finance’s cash-flow status is clear. Any positive effects of the $787-billion federal American Recovery and Reinvestment Act cannot be measured until President Barack Obama’s plan is put in place.

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