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Schwarzenegger Declares Fiscal Emergency for California

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$11.2 billion or $28 billion? Neither are good numbers when it comes to California's deficit, but that's the reality--our current budget shortfall is projected to be $11.2 billion and that could reach $28 billion in the next 18 months.

That's why Gov. Schwarzenegger declared a fiscal emergency today today, which in turn allows him to enact Proposition 58 that forces the state legislature to pass and send a bill or bills to the Governor's desk addressing the state's budget crisis. If they don't, then they cannot adjourn or act on any other bills until the fiscal problem is addressed.

Last month when trying to fix the budget, Republicans and Democrats clashed over a compromise. Schwarzenegger and Dems want to cut spending and hike takes. Republicans don't want the latter. One of the Governor's ideas for taxes includes raising them 1.5 pennies on the dollar for three years and raising the annual fee for vehicle registration.

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AP Photo/Rich Pedroncelli