We are in the midst of negotiations, and will see how the budget situation eventually gets resolved. We must act fast to address the severe cash flow shortage in the state.  In this video you will see how I tried to reinforce upon my colleagues the seriousness of our crisis. By not addressing our over-spending, the taxpayers will be asked to pay higher interest rates on the State's borrowing. 

Click here to watch SB 116 (Calderon) - Floor Speech

Higher interest rates mean higher expenses for the state at a time when we are fundamentally out of money and in an undeclared bankruptcy.  We need to set priorities as a state and reform our government.  The solution is not to tax more but to reduce our spending in a thoughtful manner, such that our people are served and our lenders (bondholders) believe that they will be repaid in a timely fashion. See my previous newsletter sent out earlier this month which explains our problem in a simple analysis.

Click here to read my June 2009 Budget Newsletter

Thank your for your continued support.