Ahhhhnuld's game of budget brinksmanship

[marmar]

from the LA Times:



Schwarzenegger takes step toward carrying out budget threat
The governor revokes the controller's authority to take out a high-interest emergency loan to keep the state running should talks fail. Democrats denounce his rhetoric.

By Shane Goldmacher
June 12, 2009


Reporting from Sacramento -- Gov. Arnold Schwarzenegger on Thursday followed up on his threat to block a high-interest loan that could be needed to keep California government running if he and state lawmakers fail to balance the budget soon.

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.

Legislative Democrats reacted angrily Thursday to Schwarzenegger's statements. .........(more)

The complete piece is at: http://www.latimes.com/news/local/la-me-arnold-budget12-2009jun12,0,5134908.story