Counter intuitive!

As many of us already know, California State is in deep red. At a high level, I wonder why the 8th biggest economy in the world is $41 billion in deficit. Sure we had the housing bubble, reduced corporation tax due to lesser profits.... but does that all add up to $41 billion. I am curious to know the reason for the shortfall. I quickly googled it but have not yet been able to find any analysis on the issue. So, I turned to the source of information:

http://www.dof.ca.gov/budgeting/budget_faqs/

There is a lot of information and I will be analyzing it in coming days but for starters lets look at the sheet that details of the distribution of California State employees for different functions.

http://www.ebudget.ca.gov/pdf/BudgetSummary/BS_SCH4.pdf

Number of "Executives" is proposed to increase from 14,303 to 14,787 from 2007 to 2009 (a 3.3% increase).

Number of "Resources" (a very vague term) is proposed to increase from 14,509 to 15,616 (a 7.6% increase).

During the same time the number of K-12 teachers is proposed to decrease from 2903 to 2848 (a 1.8% decrease).

Now, when the state is going through a financial crisis, I am wondering why we are creating more "Executive" level positions. Moreover, I am curious to understand what functions "Resourcing" covers. Decreasing the number of teachers, quite unfortunately, seems to be the easiest thing to do but I wonder if anyone considers the long-term impact of such decisions.