The federal government has decided not to step in help California with its financial crisis stating they don't have the authority to help and that if they do it for one state, they would be expected to help out all others that request help.
Here is an article from the LA Times about this.
First the federal government does not have the authority is a bunch of hogwash. Since when has not having the authority to do something stopped them? If they really have read our Constitution in regards to the "authority" of the federal government and know their U.S. History, they know full that they have been overstepping their authority practically since day one. Don't give me that don't have the authority crap.
Second, don't want to help one because all the others will want help too. What about helping out the large financial institutions? You aren't helping any of the smaller ones that really need help. That theory should have came into play with that bailout. Same with the auto industry. The feds helped out the big 3 but aren't helping any other auto companies. Not that the other companies need any help but if you are going to help one you have to help the others.
Personally, I don't necessarily think the federal government needs to help out the state's financial crisis per se, I just think their reasons as to why they aren't is a load of crap.