The basket case known as California - one of the richest states in the nation - is going broke, and the federal government apparently ain't going to be bailing them out. White House says no to California budget help | U.S. | Reuters And rightfully so. Spending is going to have to be cut, given how fast it has risen over the years. Taxes should not go up, or at least not appreciably. Of course, you have to wonder about how dumb the citizens are, having voted for a $10 gazillion new rail line but voting against funding it.