California Budget Crisis Resolved

After constant wrangling and legislative paralysis, the California legislature and Governor Arnold Schwarzenegger have finally come to an agreement on a financial package to close the record $42 Billion deficit, an all time gap in any state in American history.

California is a microcosm of the nation, as 46 states face similar crises.  Only North Dakota, Wyoming, Montana and West Virginia do not, as of now, have a financial crisis in their state budgeting.  This is why the states are looking to the federal government to rescue them with financial support to cut down the pain and suffering that budget cuts are creating.

The only reason that the California legislature was able to succeed finally was the backing of several moderate Republicans, but again, as on the national level, most of the Republicans refused to negotiate and bargain to come to an agreement, even in the midst of unbelievable crisis in the Golden State, including cutting of public works projects and furloughing of state workers for two days a month.

The Republican party is again proving to be obstructionist and uncaring about the effects of the economic downturn on the nation and the states, something to a great extent caused by their failure historically to recognize the need for effective regulation of the economy, specifically the practices of banks and corporations.

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