CHESSNOID

Every state is experiencing revenue shortage to cover all the spending programs in place.  Just like regular people in a recession deciding whether to keep cable or downgrade their cell phone plans, the state government has to balance its budget and make cuts.  Watching the TV news about union protests, city mayors preparing for the domino effect hammer to hit the city, and more people worrying if they will be the next laid off person, I can feel the tension building.  This recession is taking a turn for the worse.

LA Times:

Reporting from Sacramento — Gov. Arnold Schwarzenegger and lawmakers scrambled Wednesday to avert a financial meltdown, and public officials across California braced for annihilating cuts on the day after voters trounced their leaders’ rescue plan for the state.

Within two hours of returning from Washington, D.C., the governor huddled behind closed doors with Democratic and Republican legislative leaders to grapple with a projected $21.3-billion budget shortfall for the coming fiscal year and stop state government from running out of money by July.

Will California be the next federal government bailout? Even if you don’t live in California, chances are your state and every state is struggling with the exact same issues.