Saturday, January 22, 2011

California Declares Fiscal Emergency

On Thursday Governor Jerry Brown declared a state of fiscal emergency for the government of the most populous US state. He is pressing lawmakers to finally tackle its $25.4 billion budget gap. What’s on the cut list?

CNBC reports:

    Democrat Brown’s declaration follows a similar one made last month by his predecessor Arnold Schwarzenegger, the former Republican governor.

    Democrats who control the legislature declined to act on Schwarzenegger’s declaration, saying they would instead wait to work on budget matters with Brown, who served two terms as California’s governor in the 1970s and 1980s.

    Brown was sworn in to his third term early this month and has presented lawmakers with a plan to balance the state’s books with $12.5 billion in spending cuts and revenue from tax extensions that voters must first approve.

    Brown has said he wants lawmakers to act on his plan by March.

    His fiscal emergency declaration is meant to underscore that target, an official said.

    Brown’s declaration, which is largely procedural, says it affirms Schwarzenegger’s December declaration, giving lawmakers 45 days to address the state’s fiscal troubles.

Read more here

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