SACRAMENTO (AP) -- Governor Arnold Schwarzenegger says he will declare a fiscal emergency and call a special session of the Legislature because of California's darkening budget picture.
He wants to work with lawmakers to cut programs before shrinking tax revenue from the collapsed housing market leaves the state with a budget shortfall that could reach $14 billion over the next year-and-a-half.
The emergency declaration will be issued next month along with his proposed budget for the coming fiscal year.
The declaration triggers a special session and a constitutional requirement for the Legislature to reopen the current budget and cut costs or increase taxes within 45 days.
In a statement issued Friday, Schwarzenegger said he wants to control the deficit with spending cuts.
