Waiting to Catch the Next Wave

Waiting to Catch the Next Wave California, once recession resistant, confronts a budget crisis

An unfamiliar kind of quake has shaken California: recession. Sometimes considered immune to economic woes, the nation's most populous state suffered an 11.2% unemployment rate in October, close to half a point higher than the national average in November. In 1978 the Golden State sunned itself in the warmth of a $3.7 billion state budget surplus, but now it is projected to be more than $ 1 billion in the red before the fiscal year ends on June 30. Last month California had to take out...

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