You are close to the truth but missed the mark. This is money that should not have been spent on anything. The government of ArnieVille is broke. They have been broke for some time. The only way to reverse this unfortunate postiion is to fire Government workers in California and cut back on benefits. It's either that or default on bond payments. There is no other solution. Raising taxes will just drive the affluent taxpayers out the state.
“This is money that should not have been spent on anything. The government of ArnieVille is broke”
Sorry, but if the government is broke, then the money should have been spent on debt, not on nothing.