The state of California is poised to go broke by about July according to the state politburo's comrade in charge of budgeting. http://www.latimes.com/news/local/la-me-california-budget-crisis8-2009may08,0,7342537.story. The shortfall is estimated to be $23B. What's so concerning? Maybe it's just me, but that sounds alright in this day age. Maybe it reflects ingenious stimulus policies?
At the same time, President Obama has threatened to withhold $6.8B of stimulus money to Cali if the state cuts wages to unionized healthcare workers http://www.latimes.com/news/local/la-me-health-cuts8-2009may08,0,4592200.story. The state had cut wages to the Obama campaign contributing Service Employees International Union and the United Domestic Workers labor union.
They used to say that California is the future. Let's hope "they" are wrong.