Preston Trigg came to class again not to talk about taxes, but about the balanced budget. Every government agency has to propose a balanced budget each fiscal year. A balanced budget usually means the money expenditures and revenue are equal. According to Mr. Trigg, California does not have a balanced budget. So I decided to research it. In 2004, California put on the ballot Proposition 58, or the California Balanced Budget Act. It passed with over 70 percent of the vote. The Act was to require state legislature to pass a state balanced budget every year. It also created a reserve fund called the Budget Stabilization Account in case of future financial trouble. That was in 2004, and here in 2010 California is in the worst financial shape it has ever been. 
Proposition 57 (the California Economy Recovery Bond Act) was to prohibit creations of future bailout plans. Governor Arnold Schwarzenegger fought for both Propositions 57 and 58 to be approved. If both those acts were supposed to help the financial situation in California and they both did nothing. Schwarzenegger wanted to "tear up California's credit card" and stop spending and borrowing. I have no idea how they got into this predicament. The state is deep in debt $83.5 billion in long-term bond debt and $64 billion in general obligation notes, which are financed by the state's general fund.
These stories about taxes, state and national deficits are so interesting. You can find so much from a public record. This also generates a lot of newsworthiness because debt is affecting so many people and everyone is feeling the hurt from the economy.
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