CALIFORNIA UPDATE: “California has seen epic failures of leadership before, but never over such an extended period and at such a perilous time. Because elected leaders can’t agree on a way to fix the state’s finances, California can’t sell bonds for public works projects that would provide paychecks for thousands of people. Schools and local governments are uncertain about state aid, creating a culture of paralysis and wishful thinking that will only make the pain worse later. . . . In an editorial last week, we criticized the governor for making unreasonable demands at a time of ‘Armageddon’ – his words. But Democratic lawmakers deserve at least equal attention. In the face of a $42 billion two-year deficit, Democrats have yet to publicly acknowledge that a reduction in state payroll must be part of the solution.”