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Schwarzenegger Calls For Special Session To Discuss New Budget Problems

Governor Arnold Schwarzenegger announced he will call the new legislature into special session on December 6th, the day new lawmakers are sworn in.

The news from the Legislative Analyst’s office this week about the budget deficit had two elements. The larger one was a projected $19 billion shortfall for the next fiscal year. The more immediate problem is the $6 billion deficit remaining in the current fiscal year.

Aaron McLear in the Governor’s office said the Schwarzenegger Administration ends on February 2, 2010, so time is running out. “He has always said we’re going to spring through the finish line and if we have a deficit it just gets worse every day so he believes we need to act immediately to solve.”

McLear said the state finance department must complete its own assessment of the budget shortfall. He said it’s unclear how the $6 billion gap will be closed, but tax increases will not be a part of the solution.

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