Thinkprogress:
California Gov. Arnold Schwarzenegger “warned Treasury Secretary Henry M. Paulson on Thursday that the state might need an emergency loan of as much as $7 billion from the federal government within weeks.” Schwarzenegger’s plea comes as the state is “close to running out of cash to fund day-to-day government operations and is unable to access routine short-term loans”:
The warning comes as California is close to running out of cash to fund day-to-day government operations and is unable to access routine short-term loans that it typically relies on to remain solvent.
The state of California is the biggest of several governments nationwide that are being locked out of the bond market by the global credit crunch. If the state is unable to access the cash, administration officials say, payments to schools and other government entities could quickly be suspended and state employees could be laid off.
1 comment:
The Governor has a way of earning money for California by taxing shippers. Sarah Palin told the Governor not to do it as it would hurt Alaska and she said she doesn't want shipper to pay anything. Orders by Gov. Palin aka Miss Congeniality herself. Arnie will follow the orders of Palin. Now Henry aka Hank Paulson will not give Arnie a dime. If he did all the other states will ask for some of that 700 billion dollars.
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