LOS ANGELES, CA – OCTOBER 08: A school bus drives by on October 8, 2008 in Los Angeles, California. State Treasurer Bill Lockyer has warned that California cash account balances will run out by the end of the month. If that happens, 5,000 California cities, counties, and school districts will face job layoffs and payments for law enforcement agencies, nursing homes, teachers, and other services and government entities could be suspended. A worldwide credit crunch threatens to derail state plans for a routine 7 billion dollar loan to even out the tax flow into the state treasury. Just two weeks after state lawmakers came to an agreement, after months of haggling on a record-overdue state budget, California Gov. Arnold Schwarzenegger is warning of future cuts to the state budget to deal with looming financial problems. With a frozen credit market and revenues for the first quarter of the fiscal year falling more than $1 billion short of projections, the governor and state legislative leaders may be forced to hold special sessions to deal with a new budget crisis. (Photo by David McNew/Getty Images)
