LONDON (ShareCast) - Governor of California Arnold Schwarzenegger has declared a fiscal emergency in the US state, which faces a budget deficit of $24.3bn.
The former actor said cash shortages are $2.8bn, which could rise to $6.5bn
by September unless wide ranging cuts are made in various services.
Schwarzenegger warned that if the State is unable to pay its bills "Californians will be placed at serious risk because essential public assistance services are no longer being provided."
He has ordered many state offices to close for three days each month until June 2010 with staff unpaid for those days.
The move comes after legislators missed a 1 July deadline to approve a budget for the coming year.
Unless the budget is passed, California will issue billions of dollars in IOUs to creditors.
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
