Toro
Diamond Member
One of the biggest stories in politics earlier this year was about California's budget teetering on the edge of a $42-billion deficit abyss. It only staved off insolvency when its legislature ended three months of gridlock to pass a budget with steep tax hikes and spending cuts. Guess what the Obama Administration is doing? It is telling Governor Arnold Schwarzenegger that it will revoke nearly $7 billion in federal stimulus money unless the state restores legislated wage cuts for unionized health-care workers.
Obama Administration to federalism: Drop dead.
In its budget deal, California agreed to $74 million in wage cuts for unionized home health-care workers. The Service Employees International Union huffed to the higher power in Washington, which duly agreed to hold California's stimulus hostage.
Governor Schwarzenegger has sent a letter asking the feds to reconsider, noting the cuts were taken in response to "an unprecedented fiscal crisis." Even now the state faces an estimated cash-flow problem of some $17 billion by July.
Demoting California - WSJ.com
This is just crazy. Its bad enough that California is already a basket case, but the unions and the Obama administration are making it far more difficult for the state to bail itself out.
In other news, French will become a required language in California and DC.