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The Numbers Behind California’s Mismanaged Budget

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  • Description

    FBN’s Lou Dobbs on California’s mounting budget crisis.

  • Duration 5:03
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When -- tonight metaphorically at least is in danger of sliding into the Pacific California's budget deficit -- ballooned to a newly projected sixteen.

Billion dollars.

That's six billion dollars more that they projected just a few months ago at this rate if they were to keep revising at this rate the the deficit could search another twelve billion dollars by the end of the year.

Governor Jerry Brown attributing the junk which I'll.

And -- The tax collection of the collections are coming in as high as expected the economy and California are growing as fast as he had hoped to close the deficit Governor Brown is doing what well it seems that democratic governors have been doing acquired to build up.

That is not roll back is 91 billion dollar budget plan but propose instead.

Increasing the sales tax and hiking taxes on those who make more than 250000.

Dollars a year.

The governor added that his state is making real.

Maybe not -- -- California has to balance its budget there's always a lot of drama.

In the state legislature in Sacramento around that process.

California.

Quite stunningly has a 361.

Billion dollar.

If it's -- -- debt.

And its debt is rapidly approaching junk -- Which raises of course.

The price of servicing that debt.

In 2010 along more than 300 billion dollars in federal bonds went to California.

That's approximately 40%.

I I mean.

This is not.

The state that is what we all.

Well managed.

Traffic it's almost like the federal government it's almost that bad 40%.

40% of these states.

Expenditures.

Come from just one.

The federal.

Government.

To right now the state of California.

Can't balance its budget.

It's sixteen billion dollars in debt gonna have to borrow more money there it's got a 361 billion dollar debt.

In addition the federal government is providing 40% of the State's expenditures.

That's how big a mess -- -- There unemployment rate nothing to nothing to brag about eleven.

Percent.

Unemployment.

11%.

More than four million residents are on food ships four million and California.

A long.

On food stamps.

And what is happening in California.

Is simply.

Change.

According to the Tax Foundation California's business tax -- it's now it ranks as the third worst.

Third.

Worst.

It has one of the country's.

Worst educational system.

The State's problems affecting all facets of California society.

They -- third highest.

Third highest again -- closures.

In the country.

And California now spending twice as much on prisons as it does on state university's ten billion dollars.

Ten billion dollars.

On prisons for crying out -- out.

That's just under the estimated ten and a half billion dollars -- California will spend.

On illegal immigration each year and California among the states -- the worst graduation rates in the country.

It is actually now reporting worst graduation rates in high school than a decade ago.

And some ways it's almost cheaper to attend Harvard now -- -- California State University campus the sticker price.

On cal state tuition is 24000 dollars just.

Just -- cal state.

Think about this is a state university.

This is incredible.

24000.

Dollars.

And that's harbored by the way by comparison.

-- Harvard down -- one of the highest.

Private universities.

In the country.

Is 37000.

Dollars.

That's what parents and students are putting -- whip and the Golden State.

Harvard's generous student -- however makes -- a significantly cheaper option for many many families California is in big trouble.

And there simply is no back door up for that state nor its government.

As I said it's so bad at almost remind you the federal.

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