The elements of the strom that seem to be lining up include: (1) an election year where hard choices will be avoided if at all possible; (2) a clear budget deficit that is getting worse by the hour; (3) a recent court decision that says the state should pay federal minimum wages if it doesn't get a budget passed to state public employees; (4) a Governor proposed budget that is based on borrowing and expectations for large amounts of help from the federal government; (5) various democratic party leaders within the state government refusing to honor contracts and threatening all kinds of litigation, the result of which is making business unsure if California can be a good business partner; (6) an out-of-control Governor who appears to be shaking down anybody and everybody from teacher groups, to students, to folks contracting with the state for election campaign money; (7) Bond rating agencies that after the Merril-Lynch decision are concerned that their public pronouncements on credit-worthyness had better match their internal e-mails; (8) a financial plan to pay off borrowing that has not seen the light of day and is probably false to begin with.
Yes, this may be the perfect financial cash-flow storm building in California.
EXCELLENT INSIGHTS RE: 5) various democratic party leaders within the state government refusing to honor contracts and threatening all kinds of litigation, the result of which is making business unsure if California can be a good business partner;
This I gotta see.
AND (6) an out-of-control Governor who appears to be shaking down anybody and everybody from teacher groups, to students, to folks contracting with the state for election campaign money;
Amen.