New Fiscal Year for California

Today is the beginning of the new fiscal year in California and it's not looking good at all:

California prepared on Tuesday to resort to issuing IOUs as the giant but cash-strapped U.S. state struggled to approve a new budget in time for the new fiscal year that begins on Wednesday.

The IOUs, which are notes promising payment to vendors and local agencies, or shutting down some public services, are among measures that California and other states may have to rely on as they contend with staggering budget gaps caused by the U.S. recession.

Several U.S. states are due to start their fiscal years on July 1 with budget talks at an impasse. California, the most populous state, is especially hard hit.

The Golden State, hit by a leap in unemployment and a crash in property values, is suffering its worst tax revenue fall since the Great Depression and faces a $24.3 billion budget deficit.

"It's been a sort of perfect storm, of a very deep recession hitting us and exposing the weakness of depending on revenue sources sensitive to economic cycles," labor lobbyist Barry Broad said.

There are several regular visitors here from California and I wish them well. It's going to get very ugly. This crisis is going to really hurt those who can least afford it. It's going to hurt them were it will do the most damage long term as well...in health care, nutrition and education. You can live without state parks(though you shouldn't have to) and some of the other things but the basic promises of a civilized society are another thing. I hope everyone that voted for Arnold is real, real happy and have big bucks in their savings accounts.

I researching recipes for IOUs BTW.