The state of California is in dire straits as their budget deficits have them in the hole by about $26 billion. At one time if California stood alone it would be the seventh largest economy in the world, but today it isn't so, not only is industry in California hurting, but the tax revenues are also down too, and with 12.5% unemployment; income tax receipts are way down also. Worse, with all these people unemployed they don't have as much money to go out and buy stuff. One recent California legislator said;

"it's like we turned around and all the consumers fell off a cliff, no one is buying anything, so sales tax receipts have dropped by nearly 40%, we just don't have the money we need to deliver all the services that we had once promised."

Now the California government wants to raise taxes to help with the shortfalls, and borrow the rest of the money by floating bonds. Unfortunately, California bonds are approaching junk status. And therefore perhaps it's time to call in the junk bond specialists of the 80s; Mike Milken. I bet he could figure out how to get California out of the rears, and some good leveraged financing to get them through this hard economic time.

California needs to do something and they are all out of ideas. Meanwhile, Northern California no longer wants to be part of Southern California, and Southern California is tired of paying for all the social benefits that are being used by Northern Californians. Maybe it's time that California was broken in half, only not by an Earthquake. Please consider all this.

By: Lance Winslow
Lance Winslow is a retired franchisor - Lance Winslow's Bio. Lance Winslow is formerly the CEO of WashGuys family of franchises for instance one of Lance Winslow's favorite companies on the team; http://www.windowwashguys.com/links.shtml.