Schwarzenegger Tackles California's Budget Crisis

By Jennifer Wang

Opinions expressed by Entrepreneur contributors are their own.

governator.jpgIn a forum Wednesday evening, California Gov. Arnold Schwarzenegger addressed the Golden State's $42 billion budget deficit and fielded questions about a series of proposed ballot initiatives to help close the gap. He spoke optimistically about the state's future to a crowded auditorium in the Los Angeles Times building in downtown Los Angeles.

"Crisis brings action," he said, asserting that the six ballot measures would work to offset the shortfall and prevent budget impasses by capping annual spending and creating a rainy day fund. "It's time to fix [the system] once and for all."

If the reforms come to pass, the resulting increase in budget stability will be welcome news for entrepreneurs in California, which ranks as the world'seighth-largest economy (behind Italy and just ahead of Spain).

"Crisis sometimes brings great opportunities,"Schwarzenegger added. He noted that California is negotiating for a portion--and possibly the majority--of the $7 billion in stimulus money earmarked for high-speed rail investment. The goal, he said, is to forge ahead with plans for a high-speed rail line within the state, a development that would boost growth and provide potential business opportunities. "How fast we move people and goods around--that is economicpower."

The governor also praised the legislature for passing the budget lastmonth, despite unpopular moves to cut education programs andimplement tax increases. The actions were difficult, but necessary,he said. "When you see a $42 billion problem, that's the decision youhave to make."

Propositions 1A-1F will be put to a vote during the May 19 special elections.
Wavy Line
Jennifer Wang

Writer and Content Strategist

Jennifer Wang is a Los Angeles-based journalist and content strategist who works at a startup and writes about people in startups. Find her at

Editor's Pick

'Catastrophic': Here's What You Should Know About the Debt Ceiling Crisis — And How a Default Could Impact Your Business
I Helped Grow 4 Unicorns Over 10 Years That Generated $18 Billion in Online Revenues. Here's What I've Learned.
Want to Break Bad Habits and Supercharge Your Business? Use This Technique.
Don't Have Any Clients But Need Customer Testimonials? Follow These 3 Tricks To Boost Your Rep.
Why Are Some Wines More Expensive Than Others? A Top Winemaker Gives a Full-Bodied Explanation.

Related Topics


The Real Reason Why The Return to Office Movement is Failing is Revealed in New Study

There is a vivid sign of the disconnect between employees and their workplace, a glaring indication that companies need to revise their scripts to improve their hybrid and remote work policies.


'That '70s Show' Star Convicted on Two Counts of Rape. He 'Drugged' His Victims.

Danny Masterson was accused of forcibly raping three women at different times between 2001 and 2003. The jury reached a verdict on two counts but was deadlocked on the third.

Business News

Raccoon Adorably Orders A Donut From Dunkin' Drive Thru: 'Little Gentleman'

The hilarious clip has garnered over 21.3 million views on TikTok.

Money & Finance

3 Ways to Create Multiple (Big) Streams of Income

Here are three ways to create multiple streams of income. These strategies require effort and resources but offer significant financial potential.


9 Strategies to Help Your Employees Find Their Purpose (Or Watch Them Leave)

Purpose-driven organizations seemed like a foreign concept for many. Today, it is the key for businesses that want to stay competitive.

Business News

7 of the 10 Most Expensive Cities to Live in the U.S. Are in One State

A new report by U.S. News found that San Diego is the most expensive city to live in for 2023-2024, followed by Los Angeles. New York City didn't even rank in the top 10.