Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SACRAMENTO, CA-Gov. Arnold Schwarzenegger on Wednesday declared a fiscal emergency, ordered three unpaid furlough days every month for state employees in order to conserve cash and called a Proposition 58 legislative special session. On Thursday, the Governor and Senate President Pro Tem Darrell separately told the media that they are now prepared to compromise and are working to come to an agreement in days, not weeks.

The move comes one day after the start of the new fiscal year, which began with the state sending out registrered warrants (IOUs) instead of checks to creditors because the Governor and the state legislature failed to agree on a new budget this week to solve the state’s estimated $24.3-billion deficit, which just grew to $26.3 billion when the new budget wasn’t passed in time.

“I will not be a part of pushing this crisis down the road–the road stops here,” the Governor said, reiterating that he will not sign any legislation until a solution for the entire budget deficit is in place.

Proposition 58 requires that the legislature take no more than 45 days to pass and send a bill or bills to the Governor’s desk addressing the state’s budget crisis. If it does not, it cannot adjourn or act on other bills until it has done so.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.