California continues to limp towards fiscal Armageddon, with no change in the positions of either the Republicans (“cut spending now”) and the Democrats (“increase taxes now”). Meanwhile, a Sacramento judge ruled that Governor Schwarzenegger’s mandatory furloughs are legal. Many state employees will take next Friday, February 6th, as an unpaid day off. State employee unions are expected to appeal the ruling.
Meanwhile, California lawmakers—especially the Democrats in Sacramento—are hopeful that the stimulus package may give some relief to the budget crises. If it does they should remember it will be fleeting. Sooner or later massive budget cuts are going to happen in Sacramento. The day of reckoning has been put off for years. A bailout from Washington would just postpone the inevitable for a few weeks or months.
I’ll keep you informed if anything happens…but I’m not expecting any change out of Sacramento this week.
I’m impressed at how, at a time of crisis, Republicans and Democrats have set aside their differences and become such pure politicians.