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Business leaders and other civic leaders, meanwhile, are rallying behind the idea of a constitutional convention. That, of course, could be a can of worms. Erwin Chemerinsky, a leading constitutional scholar and dean of the University of California Irvine Law School, argues that advocates for budget sanity should first try a ballot measure to change the two-thirds vote requirement on budget and tax measures. "If a statewide initiative to eliminate the two-thirds majority requirement can pass, that will solve a lot of the problem," Chemerinsky says. "And then it makes sense to move on to a constitutional convention...

Author: /time Magazine | Title: California's Budget Crisis: Is There a Way Out? | 7/2/2009 | See Source »

...University of California, Sokhoeun needs every penny of financial aid she can find. And that aid is almost certain to be cut in the coming round of budget slashing. The Cal Grant program is on the chopping block as Gov. Schwarzenegger proposes the elimination of grants for incoming freshman and the gradual phasing out of the program. Now Sokhoeun and thousands of outstanding students - the human capital for California's future economic growth - stand to see their dreams dashed...

Author: /time Magazine | Title: California's Budget Crisis: Is There a Way Out? | 7/2/2009 | See Source »

...nation, California is suffering in the Great Recession. Jarring cuts to the state's K-12 schools, universities, children's healthcare, the infirm, the elderly, roads, infrastructure, cities, counties, libraries, police, fire and parks - nearly all the programs that government provides - are unavoidable. The big question: Will the budget knife slice California's middle class in a significant way, and, if so, how will those voters react to the pain...

Author: /time Magazine | Title: California's Budget Crisis: Is There a Way Out? | 7/2/2009 | See Source »

...major reason lawmakers are considering taxing these benefits for the first time: there's a lot of money involved. Depending on how it is structured, a tax on the most expensive benefits could bring in hundreds of billions of dollars over the next 10 years, the Congressional Budget Office has estimated. But it would be a politically treacherous move that would not affect only the wealthy. Many of those generous health plans are also part of union contracts - and in many cases were negotiated in lieu of higher wages - which means Obama might have to go back on his campaign...

Author: /time Magazine | Title: Will Obama Tax Employer-Provided Health Benefits? | 7/2/2009 | See Source »

...families and 44% associate it with crime. And experts say that because of lax legislation, around 60% to 70% of Ukraine's gambling establishments were operating illegally. Pysarenko estimates that the industry is worth about $5 billion per year, only 2% of which made it to the state budget as operators avoided paying taxes. (Watch a video about a Russian roadtrip...

Author: /time Magazine | Title: All Bets Are Off: Russia and Ukraine Ban Gambling | 7/2/2009 | See Source »

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