California is running out of money to pay its bills.
The state can’t get loan funding to float its operations. Yesterday Governor Schwarzenegger advised Treasury Secretary Henry Paulson that California may need a $7 billion loan within the coming weeks.
It seems likely that we will be looking at some state layoffs. But with “user funding”, it’s not clear how this might end up affecting the California Division of Workers’ Compensation and the WCAB.
Here’s a link to the LA Times article on this:
http://www.latimes.com/business/la-fi-c … 6760.story
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Category: Political developments