Governor Declares State of Fiscal Emergency

On Wednesday afternoon Governor Schwarzenegger held a press conference to discuss the next steps that need to be taken to solve the state’s ever growing budget crisis. 

Schwarzenegger declared a new state of fiscal emergency, launching another special session for lawmakers to continue dealing with the state budget crisis.  The Governor also announced a third furlough day per month for state workers.  Those furloughs will occur on the 1st, 2nd, and 3rd Fridays of every month through June 2010.

Schwarzenegger also announced that he would not sign any legislative measure unrelated to the budget.

By allowing the fiscal year to end without trimming $3.3 billion from the 2008-09 education budget, lawmakers and Governor Schwarzenegger lost the chance to cut spending in a manner considered crucial to bridging the $24 billion deficit.  The new deficit number will be roughly $26.3 billion, approximately $2 billion higher than the governor’s May budget, according to Schwarzenegger’s Department of Finance. 

Before turning the press conference over to the Director of Finance, Mike Genest, the Governor proposed additional program cuts to solve the larger deficit problem, and once again pushed for reforms to the state’s pension system.

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