Governor Calls 8th Special Session on Budget in Seven Years
SACRAMENTO — Governor Arnold Schwarzenegger today announced that he will call the legislature into Special Session to address a new projected budget deficit. The Special Session will convene on Monday, December 6th, the first day the new legislature is sworn in.
“While California’s economy appears to be showing signs of stabilizing, our job creation and revenues are still lagging. Changes in Congress and passage of Proposition 22 also present significant new challenges to balancing our budget,” Governor Schwarzenegger said.
“I will call the legislature into Special Session on the day the new members are sworn in to address a projected shortfall in this year’s budget. I know this will be difficult, but as we know from experience, putting off the hard decisions to bring spending in line with our revenues only makes solving the problem more difficult. Legislators will have to face the ugly truth that we can only spend the revenues we have.”
The Legislative Analyst estimated that this year’s budget may fall short by $6.1 billion and that next year’s budget deficit may be as high as $19 billion, for a total projected deficit of $25 billion.
“The LAO’s estimate is a sobering reminder that California’s economy is still struggling,” the Governor said. “I have spoken to all four legislative leaders and they know what we are up against. They know it won’t be easy, but they also know they cannot wait to take action.”
The Governor will be issuing a proclamation declaring a fiscal emergency and call the legislature into Special Session on Monday, December 6th.
On the first day of the Special Session, the Governor will introduce legislation to make spending reductions and other changes to the 2010 Budget Act necessary to address any estimated shortfall in the current fiscal year.
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