The state of California is out of cash, laying off workers – and 41 billion U.S. dollars in the red.

Hello, I’m Charlotte Bellis and you’re watching Newsy.com.

California Governor Arnold Schwarzenegger started to layoff 20-thousand state workers after state lawmakers failed to pass a budget.
 
We’re tracking local and national coverage from CBS2, the Sacramento Bee, MSNBC, FOX News and CNN.

Let’s begin with the local perspective.

Los Angeles-based CBS 2 reports state lawmakers spent days and nights trying to solve the 41 billion dollar shortfall.

However, the TV station says it came down to politics.

“Some lawmakers admit the budget could put them in hot water with their constituents. “You want to go back to your district and say, “I wasn’t in part of that mess”? Vote No. But what if you fix, if you vote no, if it’s a good deal. We’ll have to look at it.”” (CBS 2)

Many blame the Republicans for not approving the budget. A reader on the Sacramento Bee’s website criticizes the GOP senators.

“What is frustrating is that they not only won’t compromise, they are not offering an alternative solution.” (The Sacramento Bee)

From a larger perspective, MSNBC’s Morning Joe says California’s government is taking advantage of the economic situation despite their uncontrolled spending.

“They get more of the bailout money because let's say Utah or Washington State or Maine was more responsible, they'll get less of that money. So Arnold spends all he needs to spend, democrats in California spend all they need to spend, act recklessly and they’re rewarded.” (MSNBC)

FOX News’ Glenn Beck takes another view by looking at what he says is one of the problems behind California’s massive debt: illegal immigrants.

“It costs the state between 5-10 billion U.S. dollars, including 75 million bucks on healthcare, a cost that is not going to stop. It’s going to continue to rise. Considering their budget deficit, California could save almost 25 cents of every dollar just by keeping people out of the lifeboat that shouldn’t be on the ship in the first place.” (FOX News)

Finally, CNN looks at California Governor Arnold Schwarzenegger’s approval rating.

“Right now his approval rating is well below 50%. It’s actually at 40%. Just a year and a half ago it was around 60% so this is really bogging him down, but right now he doesn’t have a whole lot to lose because he’s not up for re-election. He’s going to be done in 2010 when the term limits kick in.” (CNN)

So what do you think California could do to salvage its financial crisis?
How do you think the stimulus package should be allocated to states with much-criticized spending issues?

Please tell us your thoughts and check out links to our sources.

I’m Charlotte Bellis for Newsy.com.