In the US. California's chief financial officer has warned the state will run out of money in about two months as chances of a Christmas budget compromise slim.
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California governor Arnold Schwarzenegger ordered all state employees to take two days off a month without pay or a similar salary cut to save 1.3 billion dollars in the coming fiscal year. |
The most populous state in the US is about 15 billion dollars in the red, and the budget deficit is projected to grow to nearly 42 billion in 18 months.
Most of the state revenue comes from income tax by capital investment. The downturn of the stock market has cut into expected state revenue.
Last week, California governor Arnold Schwarzenegger ordered all state employees to take two days off a month without pay or a similar salary cut to save 1.3 billion dollars in the coming fiscal year.
He also ordered state agencies to cut their payrolls by 10 percent.
(CCTV December 26, 2008)
