10bn of the 26bn deficit was closed by one-time accounting gimmicks and raids on the local govt's treasuries (which they promised to repay to the local level in 10 years). Didn't Arnold say to make real cuts and not use smoke and mirrors? I have a feeling Cali will have another crisis by the end of next year if tax revenue does not pick up.
They have way underestimated the shortfall and they know that they have. They are just buying time. Its going to get ugly.
LOL, I was thinking of the wrong kind of silicone as well - I was like "I thought they stopped making those?"
Does anyone actually believe they can close that kind of deficit that quickly, there is no way this is the end to their troubles.