Broke, California Holds Huge Garage Sale

California, Michigan, South Carolina and Rhode Island lead jobless statistics

(AP) - Four states—California, South Carolina, Michigan, and Rhode Island—registered unemployment rates above 10% in January, and the national rate is expected to hit double digits by year-end. The US Labor Department's report on state unemployment, released today, showed the increasing damage inflicted on workers and companies from a recession now in its second year. More»

Critics say another crisis looms

(NEWSER) - California's budget fight is officially over. For now. Arnold Schwarzenegger signed into law yesterday a budget package that closes the state's $41 billion shortfall, but not before making $1 billion in line-item trims. The governor cut personnel budgets for state officials by 10%, $400 million in prison funding, and $510 million from higher ed. He plans to replace the education money with federal stimulus funds, reports the San Francisco Chronicle. The bill also includes $12.5 billion in tax increases. More»

Dems make big last-minute concessions

(NEWSER) - The California Assembly quickly stamped its approval on a state budget passed by the Senate early this morning, ending a 3-month budget deadlock. The final Republican vote needed to pass the bill came with steep concessions, though billions of dollars in tax hikes and program cuts remain intact, the Los Angeles Times reports. In the final hours, Democrats cut a gas tax from the package and agreed to open primaries to voters of all parties. More»

200K at DMV, other agencies stay home amid budget crunch

(NEWSER) - Californians looking to renew a driver’s license today will be disappointed, as 200,000 state employees take their first forced day off. Gov. Arnold Schwarzenegger says the two mandatory unpaid vacation days per month—a 9% pay cut—is a budget necessity. But many Californians are confused about which offices are still open, reports the Los Angeles Times. More»

(NEWSER) - Arnold Schwarzenegger has proposed cutting a week out of the public school calendar, the latest desperate measure in California's struggle with a $41 billion budget shortfall. The Governator says the $1.1 billion savings will ward off other cuts to education, which makes up 40% of the state budget. Schools would close early or find money to finish the 180-day year, raising fairness concerns, reports the Los Angeles Times. More»