California Going Bankrupt

June 11. 2009

For a state that contains the most unscrupulous, greedy, thieving entertainment sector in existence, one would think the money would be flowing in abundance.

However, California is skidding towards bankruptcy. The financial health of the state is quite dire. The problem is California, much like Florida, is plagued with fraud the government has failed to rein in.

Just take one look at national numbers and read the news for the country and you will discover this fact. The problem is compounded by the fact that is it a large state.

California nears financial "meltdown" as revs tumble

Wed Jun 10, 2009 7:31pm EDT - SAN FRANCISCO (Reuters) - California's government risks a financial "meltdown" within 50 days in light of its weakening May revenues unless Governor Arnold Schwarzenegger and lawmakers quickly plug a $24.3 billion budget gap, the state's controller said on Wednesday.

Underscoring the severity of California's cash crisis, Controller John Chiang, who has previously warned the state's government risks running out of cash without a budget deal, said revenues in May fell by $1.14 billon, or 17.7 percent, from a year earlier.

Additionally, the revenues of the government of the most populous U.S. state fell short of estimates in Schwarzenegger's budget plan by $827 million, Chiang said.

http://www.reuters.com