Thanks to Arnold, California’s Bankrupt

by Paul Hogarth on July 2, 2009

Two months ago, Beyond Chron wrote that Arnold Schwarzenegger’s legacy as Governor will be driving the state to bankruptcy. At 12:00 a.m. on July 1st, this became a literal fact. Arnold has vetoed the latest budget measure, meaning the state now has no money – and will start issuing I.O.U.’s rather than paying its bills. With a $24 billion deficit, Democrats in the state legislature passed a $7 billion stop-gap measure to keep the state running for a few months – as negotiations with the Republican ideologues were going nowhere. All Arnold had to do to avoid the state going broke was to sign the legislation, thus extending negotiations for a few months – which could buy some time for a long-term solution. But Schwarzenegger vetoed the stop-gap measure, saying we must solve the “whole budget” now. And what exactly is the Governor’s idea of a “whole budget”? Eliminate Cal-WORKS, making us the only place in the industrialized world that would not have a safety net. Even Mississippi has a safety net, but California (a deep blue state) soon might not.

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