I don't have to go into the details of what is going on in California right now. The bottom line is that the state is broke. Part of the reason California is broke is because the wealthy, the high-producers, the larger taxpayers have fled. Can you blame them? We are still free enough to chose to escape high tax states, though that may change under the enlightened leadership of Barack Obama. At any rate, now California has to balance its budget, and it is ugly. Amusingly, it is putting a real strain on the relationship between state Democrats and the labor unions. I say amusingly because I love to see unions scream and politicians squirm.
California is going to have to cut government services --- big time. In fact, some government services may be eliminated altogether. CalGrants, for instance, provides financial aid to low-income students of union members. That program would be phased out. Also, government home healthcare services would be slashed. There's even a headline on Drudge this morning suggesting that California may end its welfare programs. It's news like this has the unions' thongs in a wad because many of them would lose their jobs or see a significant reduction in forces.
What is the solution offered up by the unions? Well .. the same solution Obama has for funding his government takeover of health care. It's really very easy. You just tax the rich! Yep, there is a union pledge being passed around to support $44 million in new or higher taxes on the wealthy, oil companies, tobacco industry and others. The California Democrats, it seems, aren't biting. The unions are "appalled" that Democrats are openly discussing the idea of cutting government programs without first considering the idea of tax increases. Union members are beginning to ask themselves: "If these Democrats are not going to stand up for us, then what good is it to have them there?"
So will these Democrats end up bending to union demands? If not, it could lead to the end of their political careers. If they do, it could lead to the financial collapse of California.