There is now a bit of worry for some of the California population -
1) The economy and employment have not improved.
2) Every time the state government has a budget plan, and makes a few cuts, the economy gets worse and revenue drops, creating another big hole.
3) Local cutbacks for cities and counties are increasing, and starting to pinch even the better off communities.
4) Local and state employees are trying to push back at the cuts and hour reductions.
5) Various fruitcake ideas, like legalizing and taxing "medical" marijuana, have been floated.
6) It looks like the State can hang in until around May-June. IF the economy picks up strongly, the state will be able to arrange short term financing to get to a time when tax revenue will be higher.
The alternative is even more cuts, and a likely strike by state employees.
That could be a nasty strike, since much of the public blames state workers, and their unions and lobbying, for causing the budget problems.
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I have no idea if there will be large handouts from the Federal government - that will depend on which political party wants to take the blame/credit for this.
No panic in the streets yet, and maybe no panic is the streets ever.
There is some talk that California could go BK, break all the union contracts, and be able to keep all the debt service current.
I don't yet have an idea of how the anti-Obama / anti-Congress feeling will translate into changes in the California legislature.
Most voters tend to like their state representatives, and California is strongly gerrymandered to make it easy for incumbents to be re-elected.
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Surprisingly, Californians don't panic as easily as I would expect. Living near earthquake faults may have something to do with this, also massive wildfires, and mud slides.
I don't think Intel will stop making chips, or Hollywood will stop movies, or farmers plow under their crops if the State Government has trouble paying their bills.
Or maybe many of the people are oblivious....
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