The Obama administration has decided against providing bailout funds to California, which has the eighth largest economy in the world and is on the verge of economic collapse, the Washington Post reports.

The Post labels California's current crisis "one of the biggest remaining threats to the economy" and reports that the Obama administration decided against doling out funds because it could lead to requests from other states.

California's deficit is believed to be $24 billion for the next fiscal year. The Golden State, led by Gov. Arnold Schwarzenegger (R), is seeking to save money by making massive budget cuts.

From the Post:
After a series of meetings, Treasury Secretary Timothy F. Geithner, top White House economists Lawrence Summers and Christina Romer, and other senior officials have decided that California could hold on a little longer and should get its budget in order rather than rely on a federal bailout.