Demoting California – WSJ.com

By at May 10, 2009 | 8:59 am | Print

california-mapREVIEW & OUTLOOK MAY 9, 2009

Demoting California

Unions hold the state’s stimulus hostage.

One of the biggest stories in politics earlier this year was about California’s budget teetering on the edge of a $42-billion deficit abyss. It only staved off insolvency when its legislature ended three months of gridlock to pass a budget with steep tax hikes and spending cuts. Guess what the Obama Administration is doing? It is telling Governor Arnold Schwarzenegger that it will revoke nearly $7 billion in federal stimulus money unless the state restores legislated wage cuts for unionized health-care workers.

Obama Administration to federalism: Drop dead.

In its budget deal, California agreed to $74 million in wage cuts for unionized home health-care workers. The Service Employees International Union huffed to the higher power in Washington, which duly agreed to hold California’s stimulus hostage.

via Demoting California – WSJ.com.

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