There’s bad news coming out of California, where Governor Arnold Schwarzenegger has declared a fiscal emergency to address California’s deficit Gov. Schwarzenegger has ordered state offices closed three days a month to save cash, and the Legislature will have 45 days to send him a plan to balance the state’s budget, which ended the fiscal year with a $24.3 billion deficit. California’s budget shortfall is expected to grow by $7 billion because the Legislature did not enact several stopgap measures Tuesday, and if lawmakers fail to act within the 45 days, they cannot adjourn or act on other bills until they solve the crisis. It’s also worth noting California’s state economy would be the eighth largest national economy in the world, so a collapse of California’s economy certainly wouldn’t bode well for any economic recovery in the nation – and possibly the world.
I guess the silver lining in this story is that as bad as Wisconsin’s budget deficit is, it could always be worse.