So according to the LA Times, Governor Schwarzenegger's concerned that they won't be able to pay teachers and other government workers come Oct. 28th, one week before Election Day.
"Absent a clear resolution to this financial crisis," Schwarzenegger wrote in a letter Thursday evening e-mailed to [U.S. Treasury Secretary] Paulson, "California and other states may be unable to obtain the necessary level of financing to maintain government operations and may be forced to turn to the federal treasury for short-term financing."
The cash needs to be in the state's bank account by Oct. 28 to be available to fund a scheduled $3-billion payment to more than 1,000 school districts.
The article mentions some other states in trouble:
Plans by several state and local governments to borrow in recent days have been upended by the credit freeze. New Mexico was forced to put off a $500-million bond sale, Massachusetts had to pull the plug halfway into a $400-million offering, and Maine is considering canceling road projects that were to be funded with bonds.
So, I wonder how many states will have to stop paying government workers by Election Day?