For Sale: State of California, 24 billion OBO

The day of reckoning has finally come to the state of California and its reluctant inhabitants. This week voters said no to the California Legislation budget balancing tactics which included tax hikes and pushing debt obligation into the distant future. So “Governator” Arnold Schwarzenegger has no choice but to cut vital programs, release prisoners, terminate (no pun intended) teachers and state worker positions and eliminate student grants for some 77,000 students.

The voters have spoken and now must face the pain. Californian’s for years voted on programs that relied heavily on the long term success of states explosive real estate market and ever growing population base.  This defecit spending came to a screaching halt as Califonia was pounded by the recession. For the first time since 1938 personal income has declined and the unemployment is 11 percent, one of the highest rates in the nation.

Democrats who control the Legislature are reluctant to cut state spending but have offered little in the way of a plan for closing the deficit. Its doubtful Republicans will give the two-thirds approval needed to vote in new tax increases or increase borrowing.

  So whats the state to do? Schwarzenegger and some Democratic lawmakers have approached the Obama administration for a federal loan (yes a bailout) an unprecedented move that will likely never gain any ground from a gun shy Congress already catching heat for its recent bailout shenanigans