Can you say "bailout"?

By JUDY LIN | Associated Press

SACRAMENTO, Calif. (AP) — California's budget deficit has swelled to a projected $16 billion — much larger than had been predicted just months ago — and will force severe cuts to schools and public safety if voters fail to approve tax increases in November, Gov. Jerry Brown said Saturday.

The Democratic governor said the shortfall grew from $9.2 billion in January in part because tax collections have not come in as high as expected and the economy isn't growing as fast as hoped for. The deficit has also risen because lawsuits and federal requirements have blocked billions of dollars in state cuts.

Or can you say "default"? $16 B is a drop in the bucket compared to this: 1/1000th to be precise. But really, it's the principle of the thing. Should we all pay for the fiscal irresponsibility of one state? How are they going to pay it back? Or will it be a grant?

At some point in time, this will have to be resolved at some level. How will it end?