Learning English - Words in the News
01 August, 2008 - Published 12:08 GMT
California cash crisis
California's Governor Arnold Schwarzenegger has ordered 22,000 state workers to be laid off and 200, 000 to have their wages slashed as the state faces a budget deficit of more than $15 billion. From Los Angeles, Rajesh Mirchandani reports:
Governor Arnold Schwarzenegger apologised to state workers as he signed the order that will leave more than 20,000 jobless and ten times that number with lower wages. The move will save $100 million a month. Yet California faces a budget deficit of $15 billion.
The main problem is that some six weeks after California's new fiscal year began, state legislators have failed to agree a budget, which means California, with one of the largest economies in the world, has no way to pay for contractors, for many of the services it provides and, crucially, no plans for how to make up that huge budget shortfall. The Governor's move is designed to put pressure on politicians to resolve the crisis.
In fact some 30 American states face budget deficits, caused by rising costs and falling revenues in a slumping economy. But California's is by far the largest.
Rajesh Mirchandani, BBC
faces a budget deficit
faces a looming cash crisis
make up that huge budget shortfall
put pressure on
to resolve the crisis
rising costs and falling revenues
a slumping economy
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