2008–2012 California budget crisis

The Democrats in the majority fought to minimize cuts to programs, while most of the minority Republicans refused to accept any tax increase.

In the legislature, the Republicans agreed to lower the income of state employees, but the Democrats resisted these proposals and suggested increasing fees to be paid by smokers and oil wells.

[14] Five days later, Bank of America, Citigroup, Wells Fargo, and JP Morgan Chase announced that they would stop accepting IOUs by July 10.

Eliminated from the final plan included proposals to borrow money from city and county governments and to drill for oil off the coast of Santa Barbara.

In order to curb the budget shortfalls, the California Board of Regents voted on a 32% raise in all tuition costs for state universities.

[18][19][20] With the passage of Proposition 30 in 2012 and a steadily improving economy, for the first time in many years, California Governor Jerry Brown's proposed budget plan for 2013 listed a small surplus.

"[28] They sponsored California Proposition 25 (2010), a ballot initiative that changes legislative vote requirements to pass a budget, but not tax increases, from two-thirds to a simple majority.