The California Meltdown

No surprise and its not like people have't seen it coming. By all accounts they are still dithering in Sacramento waiting for some magic bullet to cure their fiscal woes. (That means a Federal bailout!)

SAN FRANCISCO (Reuters) - California's government risks a financial "meltdown" within 50 days in light of its weakening May revenues unless Governor Arnold Schwarzenegger and lawmakers quickly plug a $24.3 billion budget gap, the state's controller said on Wednesday.

Underscoring the severity of California's cash crisis, Controller John Chiang, who has previously warned the state's government risks running out of cash without a budget deal, said revenues in May fell by $1.14 billon, or 17.7 percent, from a year earlier.

Additionally, the revenues of the government of the most populous U.S. state fell short of estimates in Schwarzenegger's budget plan by $827 million, Chiang said.He warned California's state government is speeding toward a financial disaster unless officials act urgently to balance its books.

Wither California?