The Guardian viewpoint on re-establishing economic equilibrium in California

[Jurriaan Bendien <bendien@xxxxxxxxxxxx>]

By far the most economically sensible thing to do would be to raise property
taxes (...)  voters consider Proposition 13 [still] to be sacrosanct,
whatever state law says about balancing budgets. (...) Mr Schwarzenegger['s]
margin for manoeuvre is extremely limited. California very much depends on
the national economy. If the US recovery takes hold after a cocktail of tax
cuts and massive public spending - what the IMF has referred to as "the best
recovery money can buy" - California, along with the rest of the country,
will benefit. (...)  California lost 275,000 jobs, a 1.9% decline, from
January 2001 through to August this year. Over the same period, 2.6 million
jobs were lost nationally, a 2% fall. (...) [I]n the early 90s... the
jobless rate soared to 9.3% as deep cuts in defence spending devastated the
state's aerospace industry. In the present downturn, unemployment is running
at 6.6%, compared to the national rate of 6.1%.

Source: http://www.guardian.co.uk/usa/story/0,12271,1058644,00.html