Can't pay its bills. Again. It may be worse than ever this time, but I remember when I was at UC Davis, we got our pay in IOUs for a while. Banks were cooperative in cashing them and collecting from the government later. With the banking problems now, I don't know how that arrangement is faring. So good luck to all you Californians. This seems like an appropriate time to rerun this Roy Zimmerman video.
Gray Davis, drummed out of office due to California's financial situation then, must be at least feeling some sense of schadenfreude.
Schwarzenegger appeared before a raucous crowd to deliver his victory address, promising, "I will not fail you. I will not disappoint you and I will not let you down."
Since the fall, when lawmakers began trying to attack the gaps in the $143 billion budget that their earlier plan had not addressed, the state has fallen into deeper financial straits, with more bad news coming daily from Sacramento. The state, nearly out of cash, has laid off scores of workers and put hundreds more on unpaid furloughs. It has stopped paying counties and issuing income tax refunds and halted thousands of infrastructure projects.Twenty-thousand layoff notices will go out on Tuesday morning…
[...]
California has also lost access to much of the credit markets, nearly unheard of among state municipal bond issuers. Recently, Standard & Poor’s downgraded the state’s bond rating to the lowest in the nation.
Ooops.
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