Last Call

So, here's what California is facing financially:

This week, voters said they no longer want the Legislature to balance budgets with higher taxes, complicated transfer schemes or borrowing that pushes California's financial problems off into the distant future. In light of that, Republican Gov. Arnold Schwarzenegger has made it clear he intends to close the gap almost entirely through drastic spending cuts.

The governor's cutbacks could include ending the state's main welfare program for the poor, eliminating health coverage for about 1.5 million poor children, halting cash grants for about 77,000 college students, shortening the school year by seven days, laying off thousands of state workers and teachers, slashing money for state parks and releasing thousands of prisoners before their sentences are finished.

"I understand that these cuts are very painful and they affect real lives," Schwarzenegger said. "This is the harsh reality and the reality that we face. Sacramento is not Washington — we cannot print our own money. We can only spend what we have."

Those of you who think that these cuts are good and exactly what California deserves, remember that basically every state and municipality in America is in varying degrees of the same situation or will be eventually, and America has about $50 trillion in unfunded liability in Social Security and Medicare and basically no way to pay for it. You're probably next.

Those of you who think this is terrible and want us to bail out California, remember that basically every state and municipality in America is in varying degrees of the same situation or will be eventually, and America has about $50 trillion in unfunded liability in Social Security and Medicare and basically no way to pay for it. You're probably next.

Have a nice weekend.