The annual California budget crisis led Gov. Arnold Schwarzenegger to declare a 'state of emergency' Wednesday. But the declaration is really a ploy to pressure unions, experts say.
A new report warns that Silicon Valley's status as a center of economic growth and innovation is in danger. Silicon Valley has lost 90,000 jobs since 2008, and venture capital funding has plunged.
As a deal stalled over school funding cuts, warnings sounded about rising state debt and falling bond ratings.
Major banks say they won't honor IOUs that the state has issued. That could increase pressure on lawmakers – but it might not be the decisive factor.
A $28 billion budget shortfall through 2010 could start to pinch next week.