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California Budget Crisis & Budget Delay of the Early 1990s

When Pete Wilson was elected governor in 1990, the state was already in a budget crisis. The crisis was related to the national recession and the end of Cold War military spending. It was originally thought the crisis would not last long. But this video clip shows that the state was still in a crisis in 1992. The budget, which is supposed to be enacted by July 1, was not signed due to stalemate between the governor and legislature until early Sept. Some state bills were paid during the period without a budget by IOUs.
Length: 03:11

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