Schwarzenegger Declares Fiscal Emergency In California

Image by Thomas Hawk via Flickr

Not surprisingly, Governor Arnold Schwarzenegger today declared that California is in a fiscal emergency after the state legislature failed to pass a $24 billion budget by July 1st.

"Though the legislature failed to solve our budget problem yesterday, rest assured that solving the entire deficit remains my first and only priority, and I will not rest until we get it done. I will not be a part of pushing this crisis down the road -- the road stops here," Schwarzenegger said in a statement.

"We continue to watch the situation and we'll see as it develops," White House spokesman Robert Gibbs said, when asked what action the federal government could take to help California, which will have to begin issuing "IOU" notes to the state's venders and local agencies starting today.

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