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Schwarzenegger takes step toward carrying out budget threat

phattonez

phattonez

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Schwarzenegger takes step toward carrying out budget threat - Los Angeles Times

By Shane Goldmacher
June 12, 2009
Los Angeles Times

The governor revoked the state controller's authority to take out such an emergency loan, a day after saying he was willing to bring state government to a "grinding halt" should budget talks stall. A loan would cost too much, he said, and give lawmakers an excuse to procrastinate.

"What we need to do is just to basically cut off all the funding and just let them have a taste of what it is like when the state comes to a shutdown -- grinding halt," Schwarzenegger told The Times' editorial board Wednesday.

Controller John Chiang said this week that California government faces a "meltdown," with the treasury set to empty by late July unless the projected $24-billion budget shortfall is resolved quickly. Lawmakers believe they must act by July 1 to keep funds flowing.
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This seems great. Schwarzenegger is not going to allow the state to take out a high interest loan. He wants the budget problem dealt with here and now. This is the Schwarzenegger that we elected. His actions here should be commended.
 
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