Posted on 12/14/2007 4:02:10 PM PST by SmithL
SACRAMENTO -- Gov. Arnold Schwarzenegger said today he plans to declare a fiscal emergency next month in the face of a $14 billion budget shortfall, clearing the way for his administration and lawmakers to make immediate mid-year spending cuts in state services.
The governor, during a speech about health care in Long Beach, said the fiscal pain would be spread "across the board" but that passage of a long-awaited, health-care reform plan in the meantime would ease impacts on the poor who depend on Medi-Cal, government-subsidized health insurance.
"We are going to call this January for a fiscal emergency when the legislators come back" Schwarzenegger said. "We will make that announcement next week some time with the legislative leaders. We will address that."
Voters gave California's governor the power to declare a fiscal emergency when they passed Proposition 58 three years ago. Today's announcement marks the first time Schwarzenegger has exercised the authority.
The proposition permits the governor to declare an emergency when revenues are substantially below what was anticipated upon signing of the budget. The state spending plan for the 2007-08 fiscal year that began July was signed in August.
But since that time, the economy has softened, due largely to a downturn in the housing market.
Legislators, who are already scheduled to return for the second-year of their two-year, 2007-08 session in January, will consider the fiscal emergency on a separate track, aside from other business, called a special session.
"We will take it seriously and respond," said Alicia Trost, a spokeswoman for Senate leader Don Perata, D-Oakland.
Under Proposition 58, the Democrat-dominated Legislature actually has little choice.
"If the Legislature fails to pass and send to the governor legislation to address the budget problem within 45 days, it would be prohibited from acting on any other bills or adjourning in joint recess until emergency fiscal legislation was passed," Trost said.
The Republican governor estimated the budget deficit at up to $14 billion.
State agencies were recently warned to prepare for sizable, across-the-board cuts.
The state's gap between revenues and spending has become a perennial problem -- one that Schwarzenegger vowed to solve when he became governor during an unprecedented recall election in 2003.
Arnold Kennedy-Schriber Schwartzenliberal is an IDIOT!
So how many Californians will start rebelling against taxation without representation?
LOL, typical liberal BS. Call for an emergency while putting more give away packages on the table. True liberal Democrat thinking.
[.this is what happens when people elect a schill calling himself a republican..]
It was a tough call. The alternative was to cede California to Mexico.
What a concept.
Can you say: TAX INCREASE?
Frankly Scarlett, many here wouldn't make a pimple on a Conservative's ass.
I just wish Ahnold would 'come clean' and finally switch parties. I'm tired of his mendacity.
I also want some here to realize they really are just RINOs who like talking a big game.
Nam Vet
a lot of folks still don’t get it and want to ull the raise taxes lever ,, again and again.. Fabian is chomping at the bit ..
whatever comes out of this, a whole lots of heads need to roll in StinkyTown for their reckless wanton wasteful spending the last few years.. what the hell were they smoking or drinking..
The Gub , cigars.
Fabian , fine FRench wines.
The SS California has never left the ice field,, t’s getting close to time to man the life boats. something has to give and I say it shouldn’t be the taxpayers again ,, but don’t bet your suv it won’t be..
pull=ull
Can we have a retro-active denial of citizenship and a deportation, on grounds of being a nitwit?
The Feds can print money. California can't. Wilson, Deukmejian, and Reagan, all Republican governors before Arnold, all ended their terms with surpluses. Arnold has outstripped even Gray Davis in fiscal largesse and with less excuse.
It’s easy Ahnold. Increase the twinkie tax on the consumer, the business tax on the self-sufficient, the corporate tax on the big guys and free government services for everyone. That should sustain you for at least another year.
But but but ... Schwartzenegger was a “front runner” and “front runners” never ever lie just to get elected!
Consider feeling shame if you voted for anyone because you were afraid of people knowing you did not vote for the eventual “winner”.
See my tagline for the definition of “front runner”
The ultimate irony is that today the web site link to “CA Strategic Growth Plan” is now a dead link.
Don’t Blame me, I voted for TOM MCCLINTOCK!!!!!
Not a case of willfully misleading but simply one of limited disclosure.
1) All formulas are based on available General Fund revenue.
2) All formulas provide for an override by a legislative, super majority.
Usually best to understand a state’s legislative process, and a little about it’s recent history, before opening one’s mouth and removing all doubt.
California. $10 billion per year in services and bennies to illegal aliens.
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