The more I read about what is going on in Sacramento, the more I'm getting sick.
I saw the following item in my daily visit to Postrel. She quotes extensively from an article written by Former state controller Kathleen Connell.
The state budget features at least $18 billion in borrowing this year. And since California's credit rating is the second-worst in the nation's history, taxpayers will pay enormous interest rates on the state's looming credit card charges. But if that's not enough, some of the borrowing may actually be illegal.
The Howard Jarvis Taxpayers Association has a Sept. 17 court date to challenge the state's use of $2 billion in bonds to pay its contribution to the retirement system. Other groups are considering lawsuits to block the sale of more than $10 billion in deficit bonds because Californians did not vote on the bonds, as required by the constitution.
If courts do block California from selling the bonds, things will get very ugly, very quickly, because there isn't a backup plan and there isn't much cash on hand.
Just great. I was born and raised in California so it isn't like I'm likely to move!
Dear California Readers:
VOTE YES ON THE RECALL