MSNBC:

California’s fiscal future lurched yet another step toward oblivion on Friday as state Controller John Chiang announced he could no longer make payments for services to disabled and blind people who need the money to pay for rent and food.Chiang said payments would most likely have to be stopped by Feb. 1.

"Delaying these payments will hurt real families," Chiang said.About one million people would be affected by the non-payments, Chiang said."People are going to be hungry at my house," said Shirley Magers, who receives a $900 monthly payment related to her disabilities. "(This is) not to mention the utilities. Personally I can’t pay all the utilities right now."

"The last day the state had a positive cash balance was July 12, 2007 — a year and a half ago," Chiang said.

My comment: California is bankrupt and now hard choices need to be made. Either cut spending for all non essential expenses or let the disabled go without. What is more then likely to happen is an emergency loan from the Federal government. I think that would be a tragedy because then people in Montana and Iowa would be paying for Californians profligacy. California will not be the last state to go bankrupt. If the FEDs bail them out where will they get the money?

John Polomny
The Real Deal