CA: School nightmare looms (facing mid-year spending cuts of $1 billion or more)

San Diego Union - Tribune ^ | 12/20/07 | Ed Mendel

[PapaBear3625]

Worst thing that could happen is the state declaring bankruptcy. At that point either a precedent would be established with the federal government bailing out the state with borrowed money from China, or bankruptcy proceeding would take place with one judge deciding the fate of the state.

Or, option 3, the state's executive branch would simply not be able to spend money that did not exist, without regard for the legislature's notions of "mandates" and "entitlements". If there's no money, the welfare checks don't come. Period.

[purpleraine]

$14 bill deficit, $10 bill in services to illegals.