[quote=Veritas]Partypup- It might be a bluff to get the Feds to bail out the State. Either way the Governator wins. It is actually a smart move. Maybe the recipients will move or self- deport.[/quote]
You know, Veritas, I’ve been wondering about the likelihood of a fed baillout to the states. Today on CSPAN Obama said two (2) things that stood out to me: first, he admitted point-bank “We’re out of money now” and second, he indicated that states would not be bailed out, but would instead be forced to slash costs as necessary:
SCULLY: States like California in desperate financial situation, will you be forced to bail out the states?
OBAMA: No. I think that what you’re seeing in states is that anytime you got a severe recession like this, as I said before, their demands on services are higher. So, they are sending more money out. At the same time, they’re bringing less tax revenue in. And that’s a painful adjustment, what we’re going end up seeing is lot of states making very difficult choices there…
