Thread: Schwarzenegger Will 'Declare Fiscal Emergency' In Weeks

Schwarzenegger Will 'Declare Fiscal Emergency' In Weeks

Gov. Arnold Schwarzenegger said Friday he will declare a "fiscal emergency" in January to give him and the Legislature more power to deal with the state's growing deficit.

Schwarzenegger made the announcement Friday after meeting with lawmakers and interest groups this week to tell them California's budget deficit is worse -- far worse -- than economists predicted just a few weeks ago.

The shortfall is not $10 billion, but more than $14 billion -- a 40 percent jump that would put it in orbit with some of the state's worst fiscal crisis, those who have met with him said.
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A fiscal emergency would trigger a special session and force lawmakers and the governor to begin addressing the shortfall within 45 days.

"What we have to do is fix the budget system. The system itself needs to be fixed, and I think that this is a good year, this coming year, to fix it," Schwarzenegger said in Long Beach, where he was promoting his plan for health care reform.

California is struggling with shrinking state tax revenue from the meltdown of the subprime housing market and the credit crunch on Wall Street.

State spending also has increased by more than 40 percent since Schwarzenegger took office after the 2003 recall of then-Gov. Gray Davis.

Schwarzenegger in August signed a $145.5 billion budget that increased spending 11 percent due largely to the increased cost of bond repayments and special funds. General fund spending for day-to-day operations increased less than 1 percent, from $101.7 to $102.3 billion for the budget year that began July 1.

In August, Schwarzenegger's office projected the state would end its current budget year with a $4.1 billion reserve. Last month, the state's nonpartisan legislative analyst reported that the state would instead end the year in the red, and was on pace to rack up a staggering $10 billion deficit over the next 18 months.

Schwarzenegger and his top aides this week have privately told lawmakers and interest groups that the gap could top $14 billion and warned cities, counties and health and welfare agencies to expect cuts.

Last month, Schwarzenegger ordered agency leaders to draft plans for across-the-board cut as high as 10 percent.

State lawmakers have been criticized in recent weeks for pushing through a raise for themselves, despite the state's fiscal troubles.

http://www.nbc11.com/news/14858065/detail.html

What is causing this? Is it the illegals alone or something else as well?

I hope I make it two more years until my retirement. And then it is Hasta La Vista, California.

I'm a life long Southern Californian. I remember the days when we were somewhat of a moderate state, with great schools and beautiful environment. Today, the Mexican invasion has contributed to many of the ills facing California. I truly believe one of the reasons this state is going broke is due to the illegals. Truly I don't blame them, I blame the idiots the liberals and probably the illegals who vote these people in office. Now the problem has festered and we're on the brink of bankruptcy. When you have governments spending more than taking in you will go broke. Tax revenues from the millions of illegals here go south to Mexico. They don't pay taxes. They now want to raise taxes, i.e., an automobile tax. I say to all Californians we better make it clear we will not pay higher taxes.

wilma Thanks for that info.

Back when some funding to the states were cut by the federal government - but not the mandates, Texas had to get creative.

They didn't raise taxes - they upped the amounts for traffic fines (none for illegals because they just don't pay them), increase professional licenses fees, auto registration fees, all manner of hidden things.

Then they all lined up in front of the cameras with their faces hanging out and declared, 'We didn't raise taxes.'.

Oh, and in some instances they simply 're-evaluated' the homes. Didn't raise taxes - as in tax percentages - just said you house was worth more. It amounts to more money in their pockets, but 'they didn't raise taxes.'

Another reason for their bankrupt state is the thousands of middle class Americans ( 2 to 3 million in the last 10 years) are getting out of Calif. because of the ILLEGAL ALIENS, high taxes on everything , property tax, health care to to illegals, food stamps, hud, etc., crime, gangs cost of jailing criminals, hundreds of reasons and yet Calif. officals refuse to protect the good citizens of their state from crime or abuse of taxpayer money.

Now the housing is a big impact as property values drop they will lose alot of tax money

STOP supporting illegals with Calif. tax payer funds, that would be a good start.

STOP the free health care at taxpayer expense and maybe a few of your hospitals will recover and remain open for California Residence.

STOP the crime and start deporting illegals

In other words its time to stop pandering to illegals at Calif. taxpayer expience. SCORE A BRAIN.....ARNOLD!!!

One of the big things that spurred the recall of Gray Davis was his tripling of the car tax.

I bet Davis is laughing his head off now...bet that car tax comes right back to bite Californian's in the butt.

I never thought Davis should have been recalled, and I thought voting Schwarzenegger in as governor was a total joke.

I'm glad I don't live in California anymore.

I can't talk about jokes - we've got Rick Perry.

Yeah we have more "creative taxes" that you could imagine. The only thing Calif has going for it is Prop 13. Thank God for Howard Jarvis and his tax fighting group. This limits the property tax on homes. Believe me very few people would be able to afford prop taxes here if it weren't for that. My husband and I will also leave California. We're both natives, but it has really gone down the tubes, thanks to the illegals. Perhaps Arizona or Oklahoma!!!! Mexico can probably claim victory, they took it from us!!!

Another reason for their bankrupt state is the thousands of middle class Americans ( 2 to 3 million in the last 10 years) are getting out of Calif. because of the ILLEGAL ALIENS,

This is what I keep pointing out to the Congressmen from Iowa. The rich don't pay because you've provided enough exceptions for them in the tax codes that they don't have to. The poor pay very little, which is only fair. The illegal pays nothing but get every service funded through taxation. You've set up this "undocumented worker system" and forced the tax payers to fund it. The tax payer in America is the middle class. When you succeed in destroying the middle class, when you and those you serve are the only ones that are not counted as the poor, who is going to take care of the poor?