Schwarzenegger Declares Fiscal Emergency to Force More Cuts
Thursday, July 2, 2009 at 1:58PM | Admin 
After rejecting Democratic proposals to help close California's $24 billion budget deficit through new taxes on oil companies and cigarettes and alcoholic beverages that are supported by a majority of California voters, Arnold Schwarzenegger has declared a state of fiscal emergency in California in order to be able to impose the types of budget cuts that he previously sought in May.
Under Schwarzenegger's state of fiscal emergency, the state legislature has 45 days to devise another budget plan to close the state's more than $24 billion deficit.
After 45 days, legislators cannot adjourn or act on other bills until they solve the crisis.
Meanwhile, Schwarzenegger has ordered the closure of state offices three days a month along with the associated furlough of 235,000 state employees on those days.
Because the furloughs are unpaid, state workers will effectively be taking a 14 percent pay cut.
The fact that Republicans can block any budget plan advanced by the Democratic majority means that this fiscal emergency will likely be used by Schwarzenegger and the Republicans to extract those deep budget cuts previously rejected by Democrats without the prospect of new revenues.
These cuts include the virtual elimination of social, health, and educational programs that serve the state’s residents such as CalWORKS, Healthy Families, and In-Home Supportive Services (IHSS).