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Calif. Could Go Bust by July

State budget may fall short by as much as $23B

By Jess Kilby, Newser User

Posted May 8, 2009 3:51 AM CDT

(Newser) – California could be broke by July if voters reject a handful of upcoming budget proposals, the Los Angeles Times reports. Officials predict the state will fall as much as $23 billion short if the unpopular propositions fail. To save money, the state may commute the sentences of 38,000 “low-risk” prisoners—including all 19,000 illegal immigrants currently in custody in California, who would be turned over to immigration authorities.

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California Gov. Arnold Schwarzenegger appears at a news conference outside of the West Wing of the White House in Washington earlier this year. (AP Photo/Charles Dharapak)

Gov. Arnold Schwarzenegger speaks earlier this year in San Francisco, where he defended budget-saving measures on the May special election ballot. (AP Photo/Paul Sakuma)

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Calif. Could Go Bust by July