CHESSNOID

The state of California is in such an extreme economic condition that I wouldn’t be surprised if our famous Governor Arnold gets the boot in the near future.

First of all, we have hit an incredible record high number of foreclosures. According to dataquick:

DataQuick says some 63,061 homes were lost to foreclosure between April and June - the most in any quarter since 1988, when the firm began tracking foreclosures.

Foreclosures increased about 33% from the previous quarter and jumped 261% versus the same quarter last year

Of course, this translates to a ton of loss tax revenue for our state. This actually is causing havoc in our state budget because it is tremendous shortage of money. No budget has been passed and now the big stakes poker game begins with our local economy thrown into the pot. According to the New York Times:

Potential impact on state workers

Affected

200,000 workers would see their pay cut to the federal minimum wage of $6.55 an hour.

7,923 permanent intermittent employees, including some Caltrans maintenance workers, would be laid off.

8,270 seasonal workers, such as state park employees and student assistants, would be laid off.

5,662 retired state workers who have been called back to work on specific projects would be laid off.

Excluded*

120 state legislators

565 political appointees, from executive staff to commissioners

2,164 legislative staff

*These employees haven’t been paid since July 1, but can receive no-interest bank loans until a budget is passed and they receive back pay.

If this happens, then I see Governator Arnold getting the boot “2003 Grey Davis” style.