California hit by budget deficit, no quick solution in sight

LOS ANGELES, Nov. 21 (Xinhua) -- California's budget crisis is deteriorating as students in many state universities are protesting a big tuition hike, with no immediate solution in sight.

California's budget deficit will reach 20.7 billion U.S. dollars over the next 18 months, according to report from the State Legislative Analyst's Office.

It also predicts that the gap between the state's projected revenues and spending next year would grow to nearly three times the 7.4 billion estimated just four months ago.

The budget hole is growing after billions in risky budget fixes had failed to materialize and also because revenue projections for next year were too optimistic, the report said.

The state's lawmakers have no other solutions to the budget crisis but further cuts to state programs.

The cuts so far have a serious impact on the operation of the state and local governments. The move has led to layoffs and cuts of social services. Courts have been forced to close on some weekdays to save money and prisons have to release prisoners to meet the budget cut.

The budget cuts also have a serious impact on education in the state. University of California's Board of Regents voted to approve a 32 percent increase in student fees last week.

Many students even barricaded themselves inside buildings at University of California to protest against the tuition hike and budget cuts.

"I hate to say it, but if you have no choice, you have no choice," President of University of California Mark G. Yudof told reporters before the vote. He said students should protest against state lawmakers who have cut education funding.

California State Superintendent of Education Jack O'Connell called the education budget "ugly."

He said for classes from kindergarten through community college,the budget is 18 billion dollars less than what had been projected a short time ago.

California Governor Arnold Schwarzenegger blamed the state legislators for refusing to cooperate with him on further spending cuts. But legislators also face tremendous pressure from local governments and voters who asked them not to cut programs closely related with the daily life of Californians.

Also, most candidates who seek to succeed Schwarzenegger in the coming election have tried to dodge the deficit issue since they have no better solutions either.

Neither Democratic nor Republican candidates have offered anything in solving the 21 billion dollar deficit, the Los AngelesTimes reported.

Professor George Lakoff from University of California, Berkeley,is lobbying for a change in the way the state legislators vote.

According to the state's constitution, a two-thirds majority vote is required to pass a fiscal-related bill. California is one of the three states to require such a margin in its legislature to pass a budget.

Lakoff believes a simple majority is best and is attempting to collect enough signatures to allow the voters to decide in next year's election.

But a recent Los Angeles Times/USA poll showed that voters are skeptical of state reform proposals.

Of those surveyed, 54 percent want to keep the two-thirds majority required to pass a budget.

Major segments of the electorate see California's problems as the product of unrestrained lawmakers driven by special interests to waste taxpayer money, and reject arguments that structural issues with the state's Constitution and government institutions are to blame.