Tuesday, February 17, 2009

California On The Brink

Legislature adjourns with no budget; governor prepares to lay off 10,000

In addition to shutting down public-works projects, Schwarzenegger administration moves toward massive state layoffs as legislators again fail to garner the final GOP vote needed to pass a budget. February 17, 2009.

Reporting from Sacramento -- With lawmakers still unable to deliver a budget after three days of intense negotiations, Gov. Arnold Schwarzenegger prepared to lay off 10,000 government workers and his administration said it would halt the last 275 state-funded public works projects still in operation.

The projects, which cost $3.8 billion and include upgrades to 18 bridges and roads in Los Angeles County to protect them from collapsing in earthquakes, had been allowed to continue as others were suspended because the state was running out of cash.

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