Schwarzenegger says day of reckoning is here Sacramento Business...

Schwarzenegger says day of reckoning is here

Sacramento Business Journal - by Kathy Robertson Staff writer

The state wallet is empty. The bank closed. Credit has dried up, Gov. Arnold Schwarzenegger told lawmakers in a special Tuesday morning address at the Capitol.

“California’s day of reckoning is here,” he said. With no action, the state will run out of cash in 14 days. Three months after the state budget was approved, California faces a $24 billion deficit.

Schwarzenegger has already proposed massive cuts to education, health care and prisons. Now he’s looking for structural reform to make government more efficient and stretch taxpayer dollars.

He’s asked the State Board of Education, for example, to make textbooks available in digital formats — a move that could save millions.

In 2004, the governor talked about blowing up boxes and consolidating agencies, but the initiatives never gained traction.

Full article at http://www.bizjournals.com/sacramento/stories/2009/06/01/daily29.html

My comment:
This will of course not just be restricted to the West Coast of the USA. So please explain how this will be good for the Dow as it moves East across the USA. I'm willing to learn.