Within the last hour, Governor Arnold Schwarzenegger has officially declared that California is in a state of 'fiscal emergency.'
State offices will now be closed 3 days out of every month and the legislature will have 45 days to send him a workable, balanced budget. Not sure if you caught the clip earlier, but former Governor Grey Davis said on CNBC that he didn't expect banks to accept California IOUs.
There is still so much room to cut the fat out of California's bloated budget. Government in the Golden State has grown steadily over the last decade. Obama had better stay out of this mess. Voters will not appreciate the precedent of a Democratic President saving an important political state while leaving 49 others to fend for themselves.