California on verge of collapse because tax cuts starved state government

Overcrowded classrooms are becoming normal in California, where conservatives caused a financial crisis with ballot initiatives freezing taxes.

Thanks to tax cuts and freezes, Golden State, like many others, is nearly bankrupt and desperately needs a bailout.

Arnella Sims has seen a lot in her 34 years as a Los Angeles County court reporter, but nothing like this.

Case files piling up by the thousands, phones ringing off the hook, forced midweek courthouse closings and occasional brawls as frustrated citizens queue for hours to pay parking fines.

"People think we're becoming a Third World country," said Ms. Sims, 55. "They don’t understand."

It's a story that's being repeated all across California - and throughout the United States - as cash-strapped state and local governments grapple with collapsed tax revenues and swelling budget gaps. Mass layoffs, slashed health and welfare services, closed parks, crumbling superhighways and ever-larger public school class sizes are all part of the new normal....

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Posted: July 09, 2010

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