Schwarzenegger Threatens to Shut Down California

Thursday, June 11, 2009 11:59 AM

SACRAMENTO — California Gov. Arnold Schwarzenegger threatened to let government's lights go dark if a budget deal can't be struck in the coming weeks.

Schwarzenegger also reversed his decision to end health insurance for families of police officers and firefighters who died in the line of duty, saying it was a "terrible screw-up" that is being corrected, the Los Angeles Times reported Thursday. The proposal would have saved the state $1 million in fiscal 2010.

Finance officials say funds will run out in late July if the projected $24 billion budget shortfall isn't resolved soon. Saying that emergency borrowing would be too expensive, Schwarzenegger said his threat to shut down state government is necessary to spur lawmakers to act quickly.

A high-interest emergency loan would provide lawmakers "another reason why we don't have to do it now," the governor told the Times. "What we need to do is just to basically cut off all the funding and just let them have a taste of what it is like when the state comes to a shutdown — grinding halt."

The governor, and legislative leaders have pledged to resolve California's deficit by the end of June. The state's new fiscal year begins July 1.

"We will meet the July 1 deadline," Senate leader Darrell Steinberg said in an e-mail to the Times.

http://www.newsmax.com/headlines/schwar ... 24080.html