Schwarzenegger staff releases latest budget fix
SACRAMENTO (AP) -- Calling California's declining fiscal health "a major crisis," Gov. Arnold Schwarzenegger's administration released a plan to close a $41.6 billion budget deficit.
The proposal announced today is unusual. It covers the rest of the current fiscal year and the next one starting July 1, rather than just a single year. It also comes early.
California governors typically release their budget proposals for the coming fiscal year in early January.
The state's unprecedented cash crisis and the inability of the Legislature to close the growing deficit forced Schwarzenegger to act early.
The administration's proposal called for a mix of tax increases and spending cuts.
Lawmakers are facing an urgent deadline to strike a budget deal. State finance officials say California will run out of money sometime in February, when it will have to start issuing IOUs to employees and contractors.
The proposal announced today is unusual. It covers the rest of the current fiscal year and the next one starting July 1, rather than just a single year. It also comes early.
California governors typically release their budget proposals for the coming fiscal year in early January.
The state's unprecedented cash crisis and the inability of the Legislature to close the growing deficit forced Schwarzenegger to act early.
The administration's proposal called for a mix of tax increases and spending cuts.
Lawmakers are facing an urgent deadline to strike a budget deal. State finance officials say California will run out of money sometime in February, when it will have to start issuing IOUs to employees and contractors.
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