Governor Declares Fiscal Emergency

image
Author: Chris Moody
Created: 01 Dec, 2008
Updated: 13 Oct, 2022
1 min read

With California facing an 11.2 billion budget deficit, Governor Schwarzenegger called lawmakers into a special session Monday and announced a fiscal emergency in the state.

"Without immediate action, our state is headed for a fiscal disaster,and that is why with more than two dozen new legislators sworn intoday, I am wasting no time in calling a fiscal emergency specialsession," Schwarzenegger said.

Unable to reach a compromise on a plan to reduce state spending and raise taxes, the debate will carry on into the session of new legislators who were sworn in this week.

Legislature Republicans rejected a Democrat-proposed plan to reduce spending by $8.2 billion and raise taxes by $8.2 billion, and instead proposed a stimulus plan that they say will kick-start the economy.

Under new rules adopted by Proposition 58, the Legislature will not be able to address any other issues if the budget crisis is not solved within 45 days.

Also today, the National Bureau of Economic Research announced that the United States is officially in a recession.

Latest articles

Clear ballot box with ballot inside.
Skokie Is the Latest Illinois City to Embrace Ranked Choice Voting
Skokie voters went to the polls on April 1 amidst a closely watched mayoral election to decide whether or not to adopt ranked choice voting (RCV). With 100% of precincts reporting, 58% of participating voters said ‘Yes’ to changing how the city conducts elections. ...
02 Apr, 2025
-
2 min read
Overhead shot of cargo at a port.
What Will Trump's 'Liberation Day' Mean for US Job Growth?
April 2 marks President Donald Trump’s ‘Liberation Day,’ which could usher in the most aggressive tariffs in modern US history or be completely blown out of proportion....
01 Apr, 2025
-
5 min read
Cory Booker
Cory Booker Just Delivered the Longest Senate Speech in US History
Senator Cory Booker of New Jersey made history with a marathon speech on the Senate floor, surpassing 24 hours in a sweeping protest against the policies of former President Donald Trump....
01 Apr, 2025
-
2 min read