Balancing California's Budget ... Can it be Done? You Try!
The LA Times has created this terrific interactive tool to give Fools a real sense of the situtation California is facing. Use this tool to see what you would do if you had to walk a mile in the Governator's insolvent shoes.
Now, let's say you managed to get that deficit slider bar all the way down to zero. Peruse the list of measures you had to enact to get it there, and then ask yourself how your once star-struck consituents would be feeling. How angry will they be whe the state starts chopping away at pensions? How betrayed will they feel when health and human services are slashed to inhumane levels, yielding untold pain and suffering? How on Earth are the citizens of this suddenly impoverished state going to afford the massive tax hikes that would be required on top of all those unacceptable cuts?
Now I think I understand why the budget was not resolved in time ... the legislators are afraid to do what is required to balance the budget, and rightfully so! There is no solution that avoids causing massive pain and suffering for the citizenry at large, and ultimately I will not be surprised to see this shortfall bailed out at the federal level. You already own GM and Citigroup and countless chunks of once-revered companies ... prepare to own a slice of California.