“California will run out of cash by early March if the state does not take swift action to find $3.3 billion through payment delays and borrowing, according to a letter state Controller John Chiang sent to state lawmakers today.”
Remember this the next time some liberal says that Texas has a budget crises “just like California.” We don’t. The Texas budget battle was like a husband and wife arguing over what to cut back from the household budget to keep putting money in the kids’ college fund. California’s budget crises is like two junkies arguing over whether to sell the baby’s insulin to buy more crack. Texas has never had to worry about whether the lights will stay on or whether the checks the state government writes will bounce or not. Nor will it, as long as the fiscal discipline that comes from having conservative Republicans in charge of the House, Senate and the Governor’s Mansion remains in effect.
The big government, high tax, closed-shop, heavily regulated blue model doesn’t work any more, and whenever you hear that Texas should embrace the California model, what they’re really saying is that big government is so awesome its worth the long-term risk of default and bankruptcy to implement. It isn’t, and it’s not.
(Hat tip: Instapundit Glenn Reynolds.)