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This week, however, the Obama Administration said it was not going to do anything to help California right now, believing that the state should try to get its budget mess in order first. There are good reasons for the Treasury not to rush to California's aid. If it backstops Sacramento, rewarding the state's bad behavior, it would set an example for other states to follow. A nightmare scenario: the Federal Government backs California's loans, which leads to a downgrading of the Treasury's credit rating and the unnerving of the global credit markets. Spooked, the Chinese government...

Author: /time Magazine | Title: Can the U.S. Afford to Let California Fail? | 6/19/2009 | See Source »

...lead role. After voters rejected a slew of convoluted budget-balancing measures, the governor has proposed cuts to programs that would make California more like a struggling Third World state than 21st century America: welfare subsistence benefits would end, 1 million poor children would lose health care, college aid for the state's best and brightest would be phased out, nonviolent prisoners would be released, hundreds of state parks would be shuttered, and thousands of teachers would lose their jobs. (Read about the 25 people to blame for the financial crisis...

Author: /time Magazine | Title: Can the U.S. Afford to Let California Fail? | 6/19/2009 | See Source »

Harvard's schools have signed on to a new federal matching program to support financial aid for veterans, but the University's units differed widely in their financial commitment to the initiative—reflecting a tradition of decentralized decision-making at Harvard that current leaders have often sought to curtail.The recently-approved Yellow Ribbon Program—part of a new G.I. Bill that promises to pay up to the maximum in-state public undergraduate tuition rate for veterans who have served at least three years after 9/11—allows institutions to enter into agreements with...

Author: By Peter F. Zhu, CRIMSON STAFF WRITER | Title: Harvard Schools Vary Widely In Level of Support for Veterans Aid | 6/18/2009 | See Source »

State leaders hope the Department of Housing and Urban Development will grant their request to develop a "disaster track" that would temporarily ease restrictions so the money can reach residents and communities faster. They're also hopeful that Iowa will receive more overall federal and state disaster aid. To date, over $3 billion has been allocated, with $638 million spent. "It's the timeliness of the money that frustrates us all," says Lieut. General Ron Dardis, a former Iowa National Guard commander who is executive director of the state's Rebuild Iowa Office, created soon after last June's disaster...

Author: /time Magazine | Title: A Year After the Flood, Cedar Rapids Struggles | 6/17/2009 | See Source »

...those people in those neighborhoods who are waiting. We have tried to move and advance as quickly as we can." He points to federal funding that has been too slow in reaching residents and, to date, too little. He says the city needs to ensure that disaster aid is spent wisely and that the city rebuilds in a smart, sustainable way that prevents future flooding. Says Fagan: "Going through the natural disaster, then the economic crisis, then a bitterly cold and hard winter certainly put strains on those ties that bind us together as a community...

Author: /time Magazine | Title: A Year After the Flood, Cedar Rapids Struggles | 6/17/2009 | See Source »

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