Its done, the poor business decisions of Wall Street banks have been granted amnesty by way of a $700 billion bailout package. And it looks like the state of California may be first in line to request billions in funding from U.S. Treasury Secretary Henry Paulson. Just yesterday, Governor Arnold Schwarzenegger sent a letter to Paulson requesting as much as $7 billion.

Sacramento Bee
has the goods:

• According to the office of State Controller, John Chiang, California could be $1.5 in the red by Halloween.

• State Treasurer Bill Lockyer put a real face on the grave situation. "California potentially could be forced next month to stop or delay payments for teachers' salaries, nursing homes, law enforcement, cities, counties, school districts and every other state-funded service."

Schwarzenegger did lots of grandstanding a few weeks ago when he vetoed the legislature's budget compromise, now he's begging for a piece of the handout to rescue California from its 85 days' late budget.

Our state's fiscal house is in such bad order that Wall Street will not loan to us and so now we must beg the federal government for a rescue.

As for the House bailout vote, a clear majority of the California delegation approved the Senate's version by a margin of 36 to 17. California Republicans narrowly approved while only a third of California Dems opposed.

There's been lots of discussion about the billions in tax cuts included into the bill. One such provision or earmark if you will, provides tax incentives to keep runaway TV and film productions in the U.S. This program has had a long-time supporter in Los Angeles Congresswoman Diane Watson, who voted "NO" during the failed vote earlier this week.

Taxpayers for Common Sense details the Hollywood tax deduction program below:

• Sec 502. Provisions related to film and television productions
  
  In an effort to keep film and television productions in the U.S, they would be eligible for a tax incentive program. Under this program, the cost of production of qualifying films would be permitted to be immediately expensed -- that is, fully deducted from income for tax purposes -- in the year the expenditures occur. This provision also makes permanent other favorable tax treatments for production. Historically Rep. Diane Watson (D-CA) has been a supporter (dating from its creation in the 2004 corporate tax bill). The cost is estimated at $478 million over 10 years.