Facing $24B Shortfall, Calif. Gets No Love From Feds
Washington refuses state's requests for aid
By Wesley Oliver,  Newser Staff
Posted Jun 28, 2009 3:16 PM CDT
President Barack Obama, right, holds the earpiece as he listens to German Chancellor Angela Merkel during their joint news conference, Friday, June 26, in the East Room of the White House in Washington.   (AP Photo/Pablo Martinez Monsivais)
camera-icon View 3 more images

(Newser) – California may be the world’s 8th-largest economy and key to President Obama’s re-election, but requests for financial aid are falling on deaf ears in Washington, Politico reports. The Golden State remains deadlocked over a $24 billion budget deficit, and many of its own officials are unsympathetic. “Why would we bail out the state when it’s like giving drugs to a drug addict?” asked one congressman.

Experts say bailing out California would look bad—picture unemployed Michigan autoworkers alongside chardonnay-sipping San Franciscans and pool-lounging Beverly Hills starlets—and would also set a dangerous precedent for other cash-strapped states. But others insist California is too big to fail. “Pending budget cuts could delay a national recovery and weaken the nation’s long-term competitiveness,” said one analyst.