California Declares State Of Emergency Over State Finances, Or Arnie Is An Austrian After All (For The Wonks)

Tyler Durden's picture

Quite possibly this has something to do with the fact that Arnie just had a very vivid Total Recall from the future in which California had filed Chapter 66 (a brand new invention in honor of the famous route), mere months after he had decided to institute the latest round of furloughs and once again paying using IOUs.

From Reuters:

pressure on lawmakers to negotiate a state budget that closes a $19
billion shortfall, California Governor Arnold Schwarzenegger declared a
state of emergency over the state's finances on Wednesday.

In the declaration,
Schwarzenegger ordered three furlough days per month beginning in
August for thousands of state employees to preserve the state's cash to
pay the state's debt obligations and for essential services.

budget is several weeks overdue and Schwarzenegger and top lawmakers
are at impasse over how to balance the state's books. Analysts say it
could be several more weeks before the Republican governor and leaders
of the Democrat-led legislature reach an agreement, a delay that may
threaten to lower the state's already weak credit rating, now hovering
just a few notches above "junk" status.

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Trichy's picture

Kudos to Arnie, he was always avantgarde in my book.

midtowng's picture

He hasn't fixed a damn thing, and he now says he'll leave office without ever signing a budget. How has he deserved ANY positive reviews?

painequalschange's picture

His heart was in the right place.

Arnie loves California.

dark pools of soros's picture

since AP proved Obama can be Prez without being US born, let's roll out the carpet for Arnold to the White House...  why the hell not..  perfect President for 2012 and when TPTB allow us to meet the aliens

Oh regional Indian's picture

Dark pools, you may be on to something. Obama as the perfect foil for his VP, Sarah Palin in 2012.

Picture that and weep.

Oh wait, Androids don't weep.

They dream,


Of electric sheep.


G-R-U-N-T's picture

Painequalschange... His heart doesn't beat for Californians welfare but for "Arnies". At his core he is a lier and hypocrate just like his paracletus Obama!!!

JLee2027's picture

Legislatures control budgets as they always have.

Hedge Jobs's picture

positive reviews for acting yes, positive reviews for reality no.

State of emergency bitchez! welcome to the future. 

Reishi-self's picture

:First, No "Bond of Office(s)" (see California state - the corporation - Constitution for CORPORATE OFFICERS - Arnold etc.) and there is NO debt. repeat - No-debt. :California-is-debt-free: Second, a (new) CALIFORNIA-state-bank - like North Dakota - heals all abuse. got syntax?

G-R-U-N-T's picture

At Trichy.....Kudos to Arnie??????

At the worst possible time this bozo wanted to extend the largest single state tax increase in US history in the form of Prop. 1A. He and other republican's in the Assembly sold their soul on this proposition. He signed AB32 the "first-in-the-world comprehensive program of regulatory and market mechanisms to achieve real, quantifiable, cost-effective reductions of greenhouse gases." Another fraudulent, job killing, regulatory looting frenzy policy.

What a joke. History will look back on "Arnie" and recognize him for the fraud he is. One of the top 10 most lying, cheating, and stealing Californian politicians ever!

NOTW777's picture

how ironic. same day a clinton judge shoots down the AZ illegal law, the terminator crys emergency.'s picture

"By the time I'm through with this whole thing, I will not be known as the Terminator — I will be known as the Collectinator." -- Arnold Schwarzenegger, 2003

Fritz's picture

Its more likely he'll be known as the "Defaultinator".

mikla's picture



MichiganMilitiaMan's picture

Yes +1, best comment I've read today.

dark pools of soros's picture

he has to battle Timmy and Ben...  who won't let him use his powers

Fox Moulder's picture

He was able to defeat The Predator, but not The Creditor.

NOTW777's picture

LOL illegals and clintonites in full bloom

FASB 666's picture

Relax, it's only a "crisis" instead of a "free fall".

Johnny Yuma's picture

"Haste la vista baby"

RockyRacoon's picture

Wonder how many more straws that California camel can take?

Paper CRUSHer's picture

Rocky....that was just:


 I said sing it dammit not read it.


Lux Fiat's picture

Titantium rods have been surgically implanted in the spine to give the camel the illusion of strength.  Without the rods, the camel's back would have snapped some time ago.

EscapeKey's picture

That's already 4 weeks old. I can't believe the stock market hasn't collapsed yet, considering the horrible situation we're in, all around.


traderjoe's picture

It's in slow motion. The only good thing about it is that it gives one time to prepare. 

Amazing that stuff like IL not paying bills isn't called out as a DEFAULT. Seriously, where's the rage?

Oh, waiting in line for an iPhone...

New_Meat's picture

Rahm has it wired, nothing to see here...

MichiganMilitiaMan's picture

What stock market???  There's a stock market???

metastar's picture

An IOU is nothing more than a promise by our government to repay nothingness with even more nothingness in exchange for nothing, ... yet we are all slaves to the IOU money masters.

The world monetary system is a terrible joke foist upon the good natured and unsuspecting by a band of calculating criminals.

I'll take gold, thank you.

LeBalance's picture

The green, black, and white slips of paper in your wallet are just that.

MayIMommaDogFace2theBananaPatch's picture

If you scale it up and multiply it a couple of thousand times, you eventually wind up with some pretty serious nothingness.

Are you feeling it?  I'm feeling it.

Mercury's picture

Good thing the we got the only honest politician in Illinois in the Oval office.

MichiganMilitiaMan's picture

Would you call that redistribution of wealth?

New_Meat's picture

Honest Pol==Pol who "stays" bought"  Pendergast machine? probably there is a Latin equivalent from Roman times.  Probably the concept was ancient at that time.

- Ned

Reductio ad Absurdum's picture

Recent Illinois governors that have been sent to jail! These are governors of the 5th largest state in the country ... being sent to jail.

Otto Kerner, Jr. (Democrat), 1961-1968

In 1969, Marge Lindheimer Everett, manager of Arlington Park and Washington Park race tracks, admitted bribing then-Governor Kerner and his Finance Director, Ted Isaacs, to gain choice racing dates and to get two expressway exits for her Arlington Park racetrack. The bribes were in the form of stock. The scandal came to light because Everett had deducted the value of the stock on her federal income tax returns in the belief that bribery was an ordinary and necessary business expense in Illinois.

Sentenced to 3 years in prison.

Daniel Walker (Democrat), 1973-1977

Convicted on federal charges, sentenced to 7 years, only served 1.5 years, had the gall to ask Bill Clinton for a presidential pardon.

George Ryan (Republican), 1999-2003

Federal corruption conviction ("illegal sale of government licenses, contracts, and leases"), sentenced to 6.5 years in prison.

Rod Blagojevich (Democrat), 2003-2009

Federal corruption charges (conspiracy to commit mail and wire fraud and solicitation of bribery (trying to sell Obama's Senate seat)). Hopefully going to jail.

B9K9's picture

Late last year, when I was reviewing the California budget in detail, I mentioned to one of the department of finance guys that Arnie would be forced to declare a SoE. Tyler entirely misses the primary reason (but isn't really @ fault & which I presume a lot of of other sites/news services will miss as well), but it's ok since he's built up such a good reservoir of goodwill @ ZH that I'm now going to explain the rationale behind the SoE:

Proposition 98. This proposition, which passed in 1988 to great acclaim (over 61% in favor), requires a minimum of 39% of the state's annual budget to be directed towards K-14 education (grades 13/14 comprising community colleges). It can only be (temporarily) suspended by a two-thirds vote of the California legislature.

How do you get the California legislature to act on the two-thirds requirement? By declaring a state of emergency. So there you have it. Done, sealed & delivered. So Brian, where's that beer I bet you that this would occur before summer was over? LOL

Atomizer's picture

I'll summarize in two words.

Force Majeure

Djirk's picture

love that "act of god" is still included as a reason to terminate a contract.....