California is facing a larger fiscal challenge resulting from its budget deficit than perhaps any other state. According to BusinessWeek, the Golden State's deficit now stands at an estimated $26.6 billion.
Governor Jerry Brown is calling for a special election this spring to maintain recent tax hikes - a proposal that has been vehemently opposed by state Republicans. But despite their minority, the legislature needs two Republican votes in each house to reach the two-thirds majority vote needed to hold a special election.
Democrats have agreed to some $12.6 billion in spending cuts, according to the Los Angeles Times, but are currently seeking to match that contribution with approximately $12 billion in tax-based revenue.
The stand-off has provoked some dire words from Governor Brown, a Democrat, who claims, "There'll be an unleashing of left and right forces. Everyone will come out fighting. California will become a battleground … It'll be a war of all against all. The loser will be the people of California."
A recent report from UCLA economist Jerry Nickelsburg asserted that what California needs is to invest in its already strong innovation and entrepreneurship sectors as means of spurring incorporation in California - a policy that most Democrats would agree with but are challenged by Republicans' steadfast determination to rein in out-of-control spending.
Tags : ca, incorporation news, small business management
Posted: Mar 11th, 2011