Governor Schwarzenegger is calling legislative leaders back to the Capitol this afternoon to address California's mounting financial problems.
Although he signed the new budget two weeks ago the governor says additional cuts may be needed because of declining revenues.
State Controller John Chiang says revenues for the first quarter are down more than one billion dollars.
The tightening of the credit markets is also causing the state cash flow problems.
Treasurer Bill Lockyer told C-N-B-C the state hopes to get a short-term loan from the federal government to pay bills until tax revenues roll in.
Lockyer: I'm hopeful but it's anticipated there would be other states and local governments. Again we're talking about short-term commercial paper, not long-term loans or something.
Lockyer says he's asked the federal government to expand its private sector short-term lending program to state and local governments.
He says because of the budget deadlock California lost an opportunity to borrow money more cheaply as other states did more than four months ago.
