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California, Got Cash?

California, Got Cash?

Sacramento, CA--The state of California may need a $7 billion dollar emergency loan from the federal government to pay for teachers' salaries, nursing homes, law enforcement and every other state-funded service this month.

Governor Arnold Schwarzenegger gave the warning in a letter he sent on Thursday to U.S. Treasury Secretary Henry Paulson.

California is not alone, almost 30 states are reporting budget shortfalls totaling $48 billion. New York State has been hit particularly hard because Wall Street accounts for approximately one fifth of the state's tax revenues.

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