State going broke

Declaring that political dysfunction in Sacramento has crippled the Golden State, Gov. Arnold Schwarzenegger said Thursday that California faces insolvency within weeks unless lawmakers resolve a $42 billion budget deficit. Troy Anderson in the Daily News.

In his sixth annual State of the State address, the Republican governor described the budget crisis as a "rock upon our chest" and vowed to focus only on the deficit until a solution is reached.

"For months, in the face of a crisis, we have been unable to reach agreement on the largest budget deficit in our history," Schwarzenegger said in a somber speech from the state Capitol.