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AirTalk

California's Economic Crunch

The budget crisis was finally solved, right? Not exactly. The budget depended on borrowing and, with the worldwide financial crisis, credit markets are now frozen. That leaves the California with a $3 billion hole. To make matters worse, the Feds are trying to force the state to spend some $300 million for inmate medical care. What's the state going to do? Larry talks with HD Palmer, Deputy Director of External Affairs, California State Department of Finance, Assembly Speaker Karen Bass, and Assemblyman Chuck Devore.