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<div class='quotetop'>QUOTE </div><div class='quotemain'></p>
Faced with as much as a $14 billion budget shortfall, Gov. Arnold Schwarzenegger said Friday he will declare a "fiscal emergency" in January, which will enable the governor and lawmakers to fast-track mid-year spending cuts and other budget solutions.</p>
"We are going to call this January for a fiscal emergency when the legislators come back," Schwarzenegger said during a health care press conference in Long Beach. "We will make that announcement next week some time with the legislative leaders. We will address that."</p>
It will mark the first time Schwarzenegger has used the "fiscal emergency" authority that he asked voters to create by passing Proposition 58 in 2004. The provision allows the governor to declare an emergency when revenues are "substantially below" what was anticipated when the budget was signed. Such an emergency would summon the Legislature into special session.</p>
If lawmakers fail to send the governor legislation addressing the budget problem within 45 days, they cannot take action on any other bills or adjourn until they do so.</p>
The Republican governor on Friday estimated the budget deficit at between "$10 billion and $14 billion," though he told legislative leaders and social service advocates earlier this week that the shortfall is $14 billion. A $14 billion deficit would represent more than 12 percent of an estimated $111 billion General Fund budget.</div></p>
Source: SacBee</p>
Faced with as much as a $14 billion budget shortfall, Gov. Arnold Schwarzenegger said Friday he will declare a "fiscal emergency" in January, which will enable the governor and lawmakers to fast-track mid-year spending cuts and other budget solutions.</p>
"We are going to call this January for a fiscal emergency when the legislators come back," Schwarzenegger said during a health care press conference in Long Beach. "We will make that announcement next week some time with the legislative leaders. We will address that."</p>
It will mark the first time Schwarzenegger has used the "fiscal emergency" authority that he asked voters to create by passing Proposition 58 in 2004. The provision allows the governor to declare an emergency when revenues are "substantially below" what was anticipated when the budget was signed. Such an emergency would summon the Legislature into special session.</p>
If lawmakers fail to send the governor legislation addressing the budget problem within 45 days, they cannot take action on any other bills or adjourn until they do so.</p>
The Republican governor on Friday estimated the budget deficit at between "$10 billion and $14 billion," though he told legislative leaders and social service advocates earlier this week that the shortfall is $14 billion. A $14 billion deficit would represent more than 12 percent of an estimated $111 billion General Fund budget.</div></p>
Source: SacBee</p>
