Governor Calls for Special Session, New Cuts

Saying further cuts are unavoidable, outgoing Gov. Arnold Schwarzenegger today called a special session of the Legislature and proposed a package of budget reductions and fund shifts totaling nearly $10 billion.

The governor declared a fiscal emergency and said he would “work until the last second” of his term to address the budget shortfall.

The proposed package includes $7.4 billion in spending reductions, primarily in the area of Health and Human Services. The package also proposes $900 million in “alternative funding solutions,” including a $6.1 million increase in fees for basin planning activities under the State Water Resources Control Board.

Both houses of the Legislature convened in Sacramento today to swear in new members and mark the start of the next session. It is not clear whether they will convene before Jan. 3 to take up budget issues.

Schwarzenegger said waiting another month to take action would make decisions even more difficult. “We know there is no more low-hanging fruit. If there is one thing we have learned over these past few years, it is that the longer we wait to tackle the problem, the larger and more difficult it is to solve.”

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Special Session 2010-11_Budget_WEB.pdf896.27 KB