Schwarzenegger declares emergency

The state's governor calls for quick legislative action to help ease the $11.2 billion deficit.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all RSS FEEDS (close)

Can the Big Three make vehicles that Americans want to buy?
  • Yes, if they get a bailout
  • Yes, if they file for bankruptcy
  • No

ATLANTA, Ga. (CNN) -- California Gov. Arnold Schwarzenegger on Monday declared a fiscal emergency, calling for fast legislative action to alleviate the state's $11.2 billion shortfall in revenue.

"Without immediate action our state is headed for a fiscal disaster and that is why with more than two dozen new legislators sworn in today - I am wasting no time in calling a fiscal emergency special session," Schwarzenegger said in a news release.

Under the state's Proposition 58, lawmakers will have 45 days to pass measures on resolving the fiscal crisis, and if at the end of that time they have not, the legislature will not be allowed to adjourn or act on other bills until they do, according to the governor's office.

Schwarzenegger's announcement comes on the heels of another special session he called in August to deal with the budget shortfall. That session ended Tuesday without a resolution.

Fiscal measures require a two-thirds vote for approval.

California's Democrats, a majority in the statehouse, are at an impasse with Schwarzenegger's fellow Republicans on spending cuts and tax hikes - leaving room for partisan fingerpointing.

"California saw Democrats take courageous votes to cut services we care about. The Republicans had a chance to also show some courage and support moderate new revenues and they simply turned their backs," said state Assembly Speaker Karen Bass on Tuesday, when both sides failed to reach a resolution in that special session.

State Senate Republican Leader Dave Cogdill blamed the Democrats for the stymie, saying Tuesday, "Governments across the nation are grappling with deficits but only Democrats in the California State Legislature are pushing to raise taxes instead of helping the economy get back on its feet."

The fiscal 2009 shortfall is projected to be $11.2 billion, the governor's office said. The Legislative Analyst's Office shows the deficit reaching a staggering $28 billion by mid-2010. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.