Governor Schwarzenegger says he'll call a fiscal emergency to deal with the state's ballooning budget shortfall. He says the gap is somewhere between $10 and $14 billion and he wants to stop what he calls the “roller coaster” ride.
Schwarzenegger : What we have to do is fix the budget system. The system itself needs to be fixed and I think that this is a good year, this coming year to fix it. We are going to call this January for a fiscal emergency.
The declaration means lawmakers would convene a special session to deal with the budget. Schwarzenegger said he would make the official announcement sometime next week with lawmakers.
In a statement, Assembly Speaker Fabian Nunez called the move “a serious step for a serious problem.”
He said he looks forward to the ideas the Governor will propose deal with the fiscal imbalance. Thursday, Nunez indicated it may be time to talk about raising taxes -- including the state's vehicle license fee.
