Wall Street Manna

An irreverent look at Wall Street

Thursday, May 14, 2009

CA asks for TARP money

California Secretary Tresury, Bill Lockyer asked Geithner for TARP assistance for California and "other financially strapped states and local governments which face a severe cash flow crunch."

The numbers for California's cash flow shortage range from $13-18 billion.

Now we know that CA is set for $7 billion of Federal stimulus money.

And we also know, that those that opposed Chrysler's "deal" with Fiat and the Obama administration, felt the wrath of the car czar.

But people may forget, that CA was facing a $42 billion deficit. So CA cut some union workers wages:

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...

But things are different in Washington.

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.

Governor Schwarzenegger has sent a letter asking the feds to reconsider, noting the cuts were taken in response to "an unprecedented fiscal crisis." Even now the state faces an estimated cash-flow problem of some $17 billion by July.
http://online.wsj.com/article/SB124182572571502451.html#printMode

Car czar? Now we have the union czar!

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