COVERITLIVE.COM

10:04

John Marelius - President Obama will sign the $787 billion economic stimulus bill this afternoon in Denver. It's a big political victory for him, but will it work? The state Senate is due to go into session any minute to try yet again to pass a state budget to wipe out the state's $42 billion deficit. With California running out of money, Gov. Arnold Schwarzenegger today begins the process of laying off 20,000 state workers and stopping construction projects. So lots to talk about. Let's get started with your comments and questions.

10:04

SignOnLiveChatModerator - Referring to the state budget, Sen. Alan Lowenthal, D-Long Beach, said, "We are dealing with a catastrophe of unbelievable proportions." What exactly is at risk for the state of California?

10:05

John Marelius - What is at risk is just about everything the state does -- education, health care, welfare, corrections -- if the state can't pay its bills.

10:08

[Comment From Seatrooper]
Does this have precedent, in this state or another? Have other states ever gone without a budget for as long or longer?

10:09

John Marelius - I cant' say for sure, but I'd be surprised if anything like this has happened in any other state. The difference in California, of course, is that it is one of only three states to require a two-thirds vote to pass a budget.

10:10

[Comment From Mark]
The Republicans who are critical of this plan have no innovative ideas of their own. They either want us to do nothing, in the style of Herbert Hoover, or they wasn tax cuts, in the style of GW Bush - both have been proven WRONG.

10:11

John Marelius - Actually, the Republicans have gotten some things they want into the budget, particularly a spending cap. That's why the Republican leaders, Sen. Dave Cogdill and Assemblyman Mike Villines have signed off on the budget. They argue it's the best deal Republicans are going to get.

10:11

[Comment From Mark]
The Republicans are playing politics here, they want to receive bailout money, they just don't want to be the ones authorizing it. Why else would the state Republicans be using the FEDERAL bailout as a bargaining chip to not raise taxes here? Are the Republicans in Sacramento admitting they are for Obama's stimulus?

10:11

John Marelius - Everybody's for free money.

10:11

[Comment From Seatrooper]
What recourse do we have as citizens if a budget is not passed and we are denied services that we voted for or were guaranteed? Is a breach of contract lawsuit between the citizens and the state even possible?

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