1992 California budget crisis

Crisis leading to the shutdown of the California government The 1992 California budget crisis began on July 1, 1992, when the California State Legislature and Governor Pete Wilson failed to pass a budget by the constitutional deadline,Weintraub Daniel M. Gillam Jerry Senate, Assembly OK Budget; Wilson Awaits Final Package https://www.latimes.com/archives/la-xpm-1992-08-30-mn-8555-story.html 24 February 2019 Los Angeles Times 30 August 1992 and ended 63 days later.Reinhold Robert 63 Days After Its Cash Ran Out, California Passes Austere Budget https://www.nytimes.com/1992/09/03/us/63-days-after-its-cash-ran-out-california-passes-austere-budget.html 24 February 2019 New York Times 3 September 1992 The state government ran out of cash reserves on July 2 and began paying employees and contractors with IOUs,California Leaders End Standoff, Meet on State Budget https://www.washingtonpost.com/archive/politics/1992/07/31/california-leaders-end-standoff-meet-on-state-budget/b1b69b08-a020-43e0-b036-6f946f3784ce/ 24 February 2019 Washington Post 31 July 1992 which major banks agreed to honor for the time being.Reinhold Robert California Forced to Turn to I.O.U.'s https://www.nytimes.com/1992/07/02/us/california-forced-to-turn-to-iou-s.html 24 February 2019 New York Times 2 July 1992 After a period of negotiation, the legislature and governor agreed on an austere $54.7 billion budget which reduced entitlement payments and public services. Nonetheless this budget left behind a cash reserve of only $435 million, prompting experts to warn about the possible need for further austerity and criticize the deal failing to address the structural problems of the state, such as the effect of Proposition 13 on limiting the government's ability to raise property taxes. References Category:Economic history of California Category:Government finances in California Category:State budgets of the United States Budget crisis