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Schwarzenegger Declares Fiscal Emergency

Published: Thursday, December 11, 2008

Updated: Sunday, June 7, 2009 08:06

Gov. Arnold Schwarzenegger called a special session with the state legislature Dec.1, to declare a fiscal emergency and address California's deficit.

"Without immediate action our state is headed for a fiscal disaster and everyone will be hurt," said Schwarzenegger. "In an emergency like this we have to take quick action to avoid even worse problems."

Stated in the proclamation by the governor, it is estimated that there will be a General Fund revenue shortfall of at least $11.2 billion for the 2008-09 fiscal year and over the next 18 months, the state's revenue gap will reach $28 billion if a plan is not put into place immediately.

The governor's stimulus plan includes a tax increase and cuts to schools, healthcare and welfare programs. The proposal also states an increase of the annual fee for registering vehicles.

Community colleges throughout California will suffer a budget cut of $332.2 million and The Los Angeles Community District alone, will suffer an estimated $29.9 million cut.

According to the Community College League of California, California Community Colleges have an enrollment of 1,823,600 students for the 2008 fall semester. If the proposal is implemented, the colleges will have to turn away 262,845 current students.

Democratic lawmakers and the governor proposed tax increases, but Republican lawmakers refused. Two-thirds majority in either the Assembly or Senate is required to pass tax increases or a state budget.

"I don't agree with raising taxes, but if that seems like the only alternative to get our state out of this, then I guess it has to be done," said Valley student Jose Aguilar

The governor's primary focus is to stimulate California's economy by creating and maintaining jobs and preventing more home foreclosures.

During a press release, Schwarzenegger said, "In his first inaugural address President Franklin D. Roosevelt said 'America would rebuild its economy only if the people pulled together as a trained and loyal army willing to sacrifice for the good of a common discipline,' we need that spirit."

Californians were urged by the governor to call or write to the legislators so the matter can be finalized.

Under Proposition 58, the legislature has 45 days to address the crisis. If they exceed the 45 days without making a decision, the legislature may not act on any other bills until this issue is resolved.

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