California Governor Arnold Schwarzenegger has declared a state of emergency in the state. The reason is due to the financial state of the state. Schwarzenegger is putting pressure on California lawmakers to help close the $19 billion budget gap that the state currently has.
As part of the declaration, thousands of state employees will be taking mandatory furlough days three times each month starting in August. This will help the state hold on to some of its cash to pay for essential services. Unfortunately, it will end up costing state employees a lot of money. Three days of furlough each month is huge.
Partisan Politics Plays Role in California Budget Disaster
The governor and the lawmakers in California are at an impasse on the state’s budget. The budget was actually due months ago. However, this problem is expected to continue for many weeks because of the partisan politics going on in California. The State of California is losing its credit rating over this disaster, so it will likely be hard for it to get credit in the near future.
This is a horrible disaster for the entire state. However, the employees who will start losing 3 days of pay each month will bear the biggest load it seems. They have got to get this thing figured out quickly. Uncertainty about a job is just a horrible way to live.
Source: Reuters
© Copyright: 2010 Kate James at Gather.com
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Comments: 7
Well they can always do the Obama way. Keep spending their way out of the state of emergency. I mean that's what Obama seems to think will work, yet it hasn't done squat diddly do for the country or the economy.
Sadly things are going to get worse before they get better.
Mooch
I don't feel sorry for overpaid employees continually making demands and getting ridiculous pensions that states cannot pay.
Tax cuts have proven time and time again that they stimulate growth and increase the amount of dollars going into the treasury. What they don't do is limit spending which is the blame for all the states and cities being in trouble. Cut taxes, reduce the size of government spending and you will see growth.....or the easy way to say this to just do the opposite of what Obama is doing.
Davis was thrown out because he misshandled the energy crisis and to bail himself out he needed to raise taxes and pay for his huge blunder. Guess Clark thinks he is smarter than the millions of Californians that voted him out....just like a liberal.
Cut taxes...reduce the size of government..let more people spend their money how they want too....don't raise taxes on people who are the job creators...don't raise taxes on small business....that is the blueprint for jobs....or the opposite of the Obama plan.