SACRAMENTO, Calif. (AP) - Gov. Arnold Schwarzenegger declared a fiscal emergency Monday and called lawmakers into a special session to address California's $11.2 billion deficit.
The state's revenue gap is expected to hit $28 billion over the next 19 months without bold action. The emergency declaration authorizes the governor and lawmakers to change the existing budget within the next 45 days.
Without quick action, the state is likely to run out of cash in February.
Schwarzenegger and Democrats have proposed a combination of tax hikes and spending cuts, but Republican lawmakers are steadfast in their refusal to raise taxes.
Lawmakers failed to reach a compromise during the special session Schwarzenegger declared last month, pushing the problem to a new Legislature that was being sworn in Monday.
The crisis worsens each week, so the Republican governor did not want to waste any time in declaring a special session, said his spokesman, Aaron McLear.
"It's important that we start on Day One so the new Legislature can start immediately to solve our fiscal crisis," he said.
There appeared to be little reason to believe that Republican lawmakers would budge on their opposition to tax increase.
"If anything, I think our resolve (against raising taxes) is deeper than it has ever been because of the economic realities," Senate Minority Leader Dave Cogdill said Monday.
Democrats don't have the two-thirds majority in either the Assembly or Senate that is required to pass tax increases or a state budget.
If I can't afford my maid, I fire her and live in a dirty house. It's called living within your means. To California: stop spending money you don't have! Furthermore, stop calling your financial situation a crisis. You are only a few layoffs away from sustainability. In Arnold's words: "Do it now!"
ReplyDeleteYou all should go jump off a cliff. You dont know what your talking about. Without California the U.S. is nothing. You guys need us. If we go bankrupt then its your butts on a plate.
ReplyDeletegoogle how to construct a solar cooker using a windshield cover that can be bought for a couple of bucks. You'll need it to cook your food when the electricity is turned off. As for how to get a supply of potable water in California without electricity, well, you can always turn around and look east to the apes of wrath!
ReplyDeleteSorry, that's just reality.
did you know that there were cycles of 100 years plus of drought in Californian ancient history?
Scientists project an 18-30% reduction in precipitation in California soon--involving a very cool South Pacific water temp. average. I kid you not.
I live in Cali, and I knew when most of the morons here were buying a regular home and paying almost $900,000 for it, that they weren't thinking it through, and we were headed for eminent disaster. First of, did they crunch the numbers to see that THEY COULDN'T AFFORD IT, and second, WHO PAYS ALMOST A MILLION DOLLARS FOR A HOUSE THAT GOES FOR $40,000 IN THE MIDWEST. I also have to add in our illegal immigrant problem, or as I like to refer to it as "the elephant in the room", everyone knows they are bleeding our state dry with working under the table and not paying taxes, and collecting welfare, they try to vaidate it by saying "they are still stimulating our economy by spending their earnings", THEY AREN'T SPENDING ANYTHING, THEY ARE ALL IN LINE ON PAYDAY-FRIDAY SENDING 95% OF THEIR EARNINGS BACK TO MEXICO. Thus the reason for 20 people living in an apartment. I am leaving Cali and moving to Texas, I stayed here for my kids, but enough with the crap, I need to go to a state that doesn't feel the need to give my hard earned tax money to people who should not be getting it. I have been unemployed since May, and I qualify for absolutely no assistance at all. I make too much on unemployment. So I CAN PAY MY TAXES FOR THE LAST 30 YEARS INTO THE SYSTEM, BUT WHEN I NEED SOME ASSISTANCE, THEY CAN'T DO A THING FOR ME.... I'm outta here.... Texas here I come!
ReplyDeleteGo from CA to TX? Good move! Texas and other low tax states have stolen so many businesses and jobs from the morons in CA that pretty soon the entire economy of the state will consist of Hollywood losers and liberal activist newspapers. If trends continue, and CA doesn't lower taxes and stop their unaffordable liberal spending programs, it'll be a depression there all right.
ReplyDeleteStatistics prove that people move out of high tax hells like CA to go to low tax havens. It's a basic economic concept that the libtards in CA seem hard wired not to understand. "You mean raising or lowering taxes actually effects people's behavior??? WOW!!! I never would have dreamed!!!" What kind of fantasy world are they living in?
Amazing! Do Californians actually BELIEVE the country needs them? I'm from New York and I thought New Yorkers were arrogant. Repeat after me, guys - NO ONE IS INDISPENSABLE. Solve your own financial problems that your state created for itself. I'm sick of rich people asking for alms from those who are thrifty and responsible. Everyone needs to live within their means.
ReplyDeleteCalifornia does have a lot of value as a state, but it's being completely mismanaged and is a prime example of the corruption sinking this country. We literally need an Andrew Jackson to come through and line the streets with hangings.
ReplyDeleteUnder a libvertarian goverment California would thrive. Poverty could realistically be completely elminated with 10 years if they only would privatize the state. SO much natural, intellectual, and financial resources going to waste under an oppresive regulatory structure....
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