Financial Armageddon In California

The situation in California is so bad that the state’s estimated annual deficit has ballooned by about $3 billion in just the last few weeks. The Republican govenor Arnold Schwarzenegger is chiding the legislature for not moving quickly enough to enact a tax hike. No doubt if he were not in power and contemplating a run, he’d be calling the governor AND the ledge “Economic Girly Men”, to use his phrase from the 2004 convention:

AP: California’s budget shortfall has grown to $14.8 billion for the current fiscal year — $3.6 billion higher than the shortfall legislators already have been unable to solve, Gov. Arnold Schwarzenegger said Wednesday.

A clearly frustrated Schwarzenegger called on the so-called “Big 5” legislative leaders to meet this week, and called the state Legislature’s failure to act so far a “shameful performance.”

“We are heading towards a financial Armageddon. We can already see it coming,” Schwarzenegger said.

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