Out in California....the state government is about $15 billion short on funds. Somewhere amongst this massive mass....they really haven't grasped how to run a state government and make cuts.
So Gov Schwarzenegger has now indicated that he intends to borrow on future lotto profits to make up the $15 billion. The state has some financial institution who is willing to loan the money against the value of the lotto. It is rather amusing to read this little story and wonder what they would have used the lotto money for.....but can't.
How far does this carry thing? About one year....at best. Cutting in the future? Oh, if Vallejo can't cut or rearrange its weird salary structure....I'd give up on California. I would speculate that you will see the state in some kind of bankruptcy situation within three years. They will ask for a massive hand from the US government.....who probably will find that most senators aren't that willing to help out.
Folks notice today that businesses are leaving the state on a weekly basis. Few people want to start new businesses in the state. Property taxes are on the high side. And crime is a serious issue in most of the cities of the state. This is really a major indicator of the problems to come....when they try to swap the lotto profits to just get by.