California has a one-year budget deficit that exceeds the cost of operating the entire State of Georgia. California’s deficit is $24 billion; Georgia’s 2010 budget, which goes into effect on Wednesday, is $18.6 billion. California’s population is 38.6 million; Georgia’s is 9.6.
The question is: Should the federal government ride to the rescue, as it did with the financial sector, including banks, and with the automobile industry?
California officials say they’ll make additional budget cuts, but want federal taxpayers to guarantee a portion their borrowings, which would bring lower interest rates. California, like Atlanta, has been represented by big-spenders whose short-sightedness has brought financial peril. Politicians think in four-year cycles and what must be done by way of spending to give incumbents or the incumbent party election advantage.
Atlanta City Council did vote 8-7 on Monday to raise property taxes by about $240 per year for the average homeowner to