Monday, April 29, 2013

California may go forward without a financial reserve

California may go forward without a financial reserve: Gov. Jerry Brown's proposed budget contains no provision for a reserve. Without a financial cushion, some say, California may be more vulnerable to drops in revenue.

SACRAMENTO — Arnold Schwarzenegger persuaded voters nine years ago that if they let him borrow money to cover the budget deficit, California's financial woes would end for good. A key part of his plan was a new rainy-day fund to insulate the state from further crisis.