- 02
- Jul
- 09
As of midnight this morning, the State of California is broke. The government representing the eighth largest economy on the planet failed to reach an agreement to resolve an ever-widening budget deficit, forcing the state to issue over $3 billion in I.O.U.s to the dozens of creditors in the public sector and private enterprise holding California’s debt.
Following Tuesday’s marathon session in the state legislature and no completion of Wednesday’s Hail Marys, the Controller’s office rolled out the promissory notes today to delay $3.36 billion in payments for at least 90 days. The move is the first for California since 1992 and comes as the consequence of increasingly acidic relationship between the state’s Assembly and Governor Arnold Schwarzenegger.
The governor has taken a hard line of tax and fee increases beyond his recommendations, vetoing every package that has come out of the legislature that includes them. Just gaining a simple majority in California’s dysfunctional General Assembly is a Herculean effort; overriding a veto is a fairy tale. The governor’s refusal to compromise on increasing revenue is the obstacle, though you would never know it from his sound-bite ready releases.
Responding to State Democrats revenue increases, Schwarzenegger was derisive, declaring “They should forget about that” and accusing them of going through a “song and dance. Let’s get to work and fix it.”
But, apart from issuing catch phrases reminiscent of a testosterone fueld action movie, the Governator has been light on details or leadership. Schwarzenegger’s adolescent remarks and publicity stunts are throwing jet fuel on a church fire. Just last month Schwarzenegger sent the Democratic Senate President Pro-Tem a pair of metal bull testicles with not saying “he would need them” for the coming budget battle.
Turning the already childish Californian political process into straight up pants-on-head retarded, Arnold has made a pissing contest out of an unprecedented financial crisis for the nation’s largest state. It would be bad enough if the hubris only endangered California. However with the state constituting 14% of the nation’s GDP, Schwarzenegger’s showboating puts the entire country’s economy at risk. The longer California’s fiscal house resembles the last season of Jon and Kate Plus Eight, the heavier an anchor the state drags on America’s recovery from the Bush Depression.
In moments this dire, the role of the chief executive in any organization public or private is to get the deal closed. For real leaders, ideology, favoritism, machismo, and gonad sculpture distribution get thrown out the window in crunch time in favor for that which works. The ideal surrenders to the practical, dogma acquiesces to compromise, want gives way to need
Right now, California is broken. And the entire country needs a real leader to fix it.















