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.
“It is so much fun watching California politics from a distance.”
..and no more of that BS about “as California goes, so goes the nation...”
LA, SF and Sacremento need to fall into the ocean, then things may start to improve.
Arnold has no such excuse.
I agree :o)
Santa Cruz, Santa Monica, Sausalito, Oakland, San Diego, and Arcata should all go with them.
Hmmm... All of those are near sea level. Maybe that's why liberals are afraid of rising sea levels. Losing Monterey and Santa Barbara would be sad, but taking Santa Cruz alone would be worth it.
Your reply is so vague I have no response. Is there a point?
This has become routine in California.
The reply showed little understanding of California's legislative process, the partisan composition of the legislature and the pivatol role a minority governor can play in those processes.
Here's a thought; If the executive is held by the legislative minority, the veto is a powerful weapon to provoke change in the majority.
Here's another: A partisan rogue in the executive who colludes with the opposition can not only destroy his own party, but also the state which he administers.
“Gov. Arnold Schwarzenegger said today he plans to declare a fiscal emergency next month in the face of a $14 billion budget shortfall” OK. So why add a ridiculous “bipartisan” health care bill that will make the emergency even worse? Is he trying to turn CA into Detroit?
Don’t ... take off your shoes
I guess another million illegals will help clear up the mess. /sarcasm
Eventually everyone will go bankrupt because of illegals.
When was the last Democrat legislature - - you know, where budgets and spending bills originate - - not to run a deficit?
Mexico.
New Jersey aught to talk. Ha ha
So basically the poor can't afford to pay for health-care straight-up so California will jack up the cigarette tax therefore making the poor pay anyways. It's is such blatant hypocrisy for California Dems to say it isn't affordable for the poor to pay for ID's to prove citizenship when registering to vote but they damn well will pay for those cigarette taxes. It's the one position where the Dems say"tough it out" as opposed to "Don't worry - big government has got it covered."
It's been said a billion times but the idea of paying for healthcare through taxes on a product that is unhealthy, in fact needing smokers to continue to smoke is so oxymoronic it is almost beyond comprehension. But hey - it's for the children!
Uhhhh...the other poster was basically correct. Certain programs are in in essence on autopilot in regards to the standard liberal claim that a lack of increase in funding is a cut. Needless to say the liberal legislature never decreases any programs irregardless of the revenues available for each budget.
And whether you think I am right or wrong, you're snarky reply was uncalled for. You could have said exactly the same thing without sounding so damn pissy. Chill.
“New Jersey aught to talk. Ha ha”
...I totally agree!! I just want to be somewhere in PA when it happens..
</sarcasm>
Or Republican?
1994 to 2001
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