Californication

Arnie has issued an ultimatum.

the governor has vowed to veto any measure that fails to close the state's entire $24-billion deficit

The state is broke and Arnie is taking a tough stand.

"Whatever needs to be done," Schwarzenegger told reporters outside his Capitol office Friday when asked why he would be willing to delay payments to needy Californians. "I know that there is a history in this building of always being late with the budget, to drag it out and to kick that can down the alley. . . . I don't think we have this luxury this time."

Trying to do the right thing upsets a few, particularly the socialists and unions. The financial controller is about to start issuing IOUs to the tune of $3Bn a month at the end of July when the state runs out of dough.

reorganizing state bureaucracy, eliminating patronage boards and curbing fraud in social services that Democrats have traditionally protected.

Something's got to give. Arnie may be the prime casualty.

"The reality of what these cuts he is pushing for will mean hasn't hit home with the public yet," Cain said. "They see him standing up to unions and trying to cut all the waste and fraud. . . . Until the middle class bleeds in a way they care about, Arnold has the upper hand."

Just like what is required in NZ to clear the decks. Slash the featherbedding by unionised socialists in the bureaucracies of academia, central and local government.

Unfortunately, either way California is stuffed.