California Legislative Analyst’s Office has issued a report saying California may need to borrow up to $20 billion. Within the report is also a recommendation that California be cautious about accepting federal assistance because it might strip California of necessary operational and financial authority.

Coincidentally, at about the same time a news story broke that Obama is threatening to rescind billions of dollars in federal stimulus money if California does not restore wage cuts to unionized home healthcare workers.

In other words, the federal government will not give money to California unless California pays union workers a certain amount.

No wonder a growing number of states are issuing “Sovereignty” proclamations and making noise, even if not too serious, about leaving the union.

Obama Trying to Control State Employee Wages
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