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.
Actually, it was the democrat State Legislature that caused
this problem.
LOL! That’s a good one. Sell it somewhere else.
Davis left the state with a $6 billion dollar deficit. Arnold borrowed $15 billion to fill that hole and spent the difference. And now, we're staring at a $20 billion dollar deficit on the horizon, an inconceivable number just a few years ago.
I believe McClintock would not be in any better shape at this point.
Would Tom have pushed borrowing as a solution to the $6 billion dollar deficit Davis left? (Hint: he opposed Prop 57/58).
Could Tom have used his celebrity status to push for a $6 billion stem-cell research obligation?
Would Tom have championed new spending programs for solar roofs, hydrogen highways, and global warming caps?
Would Tom have proposed record spending increases, far exceeding revenue growth (as Arnold did)?
Would Tom have spent 4 years defending in court Davis's borrowing scheme for pension contributions?
Would Tom have hidden his veto pen and approved budgets with full knowledge that there was an ever-growing structural deficit?
There was only one solution to the fiscal mess and that was to cut up the credit cards and shut off the credit line. The only option at that point would be to CUT SPENDING. Instead, Arnold used his celebrity status and mythical title as a "fiscal conservative" to sell his irresponsible borrowing schemes to voters and has worked behind the scenes to establish fee increases at almost every possible level. The Dems are big spenders--yes. But without Arnold aiding, abetting, and many times leading the liberal charge, there was no way things could have turned out as bad as they have.
You are familiar with the 2/3 vote requirement, right? (I guess not).
And yes--they will reduce if they have no money. Unfortunately, our "R" governor has aided the liberal spending by finding new piggy-banks.
The Republican Congress ran a budget deficit each of those years.
I am not sure what state attorneys you are taking about, but I know a lot of them are involved in fighting crime.
I think that deporting illegals would be the best solution to the budget problems. Of course, that would never fly with the Democrats.
Come now. A lot of them fighting crime? Thanks for that bit of humor. Let me ask ya.....Then why all the crime?
Why all the brutal gangs? Why are millions entering this country at a whim, while the Feds and State line up to coddle and suckle the criminals? Whats up with that?
Like the Feds, the state of California is a circus of attorneys, interpreters, court reporters, judges and con men, and others with job descriptions a professional resume writer couldn't possibly figure out.
He'll just bind our children with more bondage with compound tax increasing debt service!!!
I'm not pingin anybody to this because everybody knows this already and the stupidity of Schwartzenegger being our Governor just compounds and nobody gives a (bleep!)
I don’t think McClintock would have pushed for Universal Health Care in California like Arnold has.
My guess is that neither the other poster nor torchthemummy have every read an analysis of the Prop 98, let alone the legislation as booked or ensuing judicial and/or legislative addendums.
Please come to this forum, but do the homework first. Dissemination of feelings, rumors or media perceptions of reality are of no benefit to no one.
The vast majority of state hired attorneys work as some type of prosecutor. That is just a fact. I do not think that firing prosecutors is going to cut crime.
Whether law enforcement/boarder patrol, on the ground, is enforcing the boarders is another matter.
Those in government at all levels can’t even manage collecting taxes and implementing credible budgets any more.
Government at all levels must be reduced and downsized dramatically.
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