I’m enjoying the scenery in Las Vegas tonight. I just witnessed a beautiful sunset, with the sun peering out from beneath a high cloud from the mountains on the western edge of the Las Vegas valley.
There’s no joy right now in Sacramento, though. Democrats and Republicans remain divided—probably hopelessly so—and are nowhere near a resolution in the $24 billion budget debacle. Governor Schwarzenegger is threatening to impose a third day each month of mandatory furloughs for government employees if a budget resolution isn’t reached by Wednesday. I return to my office on Wednesday; I’ll be shocked if there’s a resolution anytime in July.
Meanwhile, IOUs will start to be issued by California on Thursday. Thankfully, I don’t do any business with the state. Unfortunately, some of my clients will be receiving tax refunds and they’ll instead get pieces of paper.
Democrats still want to increase taxes. Republicans won’t. Republicans want major budget cuts. Democrats won’t. Both sides must agree, and that just isn’t in the immediate future. My bet is on September.