Whats happening now

Presently the state owes 27 billion dollars. The states funding is about 100 billion. That 100 billion is what the state requires to run at full capacity. With over 1/4 of the states funding missing California is in trouble. The worst part is the 27 billion they owe is only what the owe now, it is predicted that by the end of 2010 the state will owe over 40 billion.The democrats and republicans have agreed to raise taxes on high paying jobs and to increase the price on items like gas and cigarettes.