California’s Schwarzenegger Declares Fiscal Emergency
Posted By thestatedtruth.com on November 13, 2010
It’s the rainy season in California…..Schwarzenegger Declares Emergency, Calls Special Budget Session
November 12, 2010
By Michael B. Marois
Nov. 12 (Bloomberg) — California Governor Arnold Schwarzenegger, citing a $25.4 billion budget gap over the next 19 months, declared a fiscal emergency and called lawmakers to a special session next month to begin dealing with the problem.
Schwarzenegger, a Republican whose term ends in January, late yesterday ordered the session to start Dec. 6, the day newly elected legislators are sworn in. He wants to take steps to erase an officially estimated $6.1 billion gap that has already emerged in the budget enacted last month.
In addition to the gap forecast for the fiscal year through June, the nonpartisan Legislative Analyst’s Office yesterday projected a $19 billion gap in the following 12 months. By Jan. 10, Governor-elect Jerry Brown, a Democrat who will be sworn in Jan. 3, must propose a plan to erase the next year’s deficit.
“The LAO’s estimate is a sobering reminder that California’s economy is still struggling,†Schwarzenegger, 63, said in a statement. “I have spoken to all four legislative leaders and they know what we are up against. They know it won’t be easy, but they also know they cannot wait to take action.â€
The authority to declare a fiscal emergency comes from ballot measures Schwarzenegger championed in 2004, when he won approval to borrow $15 billion to fill that year’s budget gap.
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