Governor's Budget Likely To Include Cuts

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(Sacramento, CA)
Wednesday, January 9, 2008
The Governor is required by law to present a balanced spending plan. Given the 14 billion dollar hole in the budget, Finance Director Mike Genest says cuts are inevitable: “I think it’s going to be very painful. I think people are going to be amazed at how hard this budget is and at how much real actual cutting we’re going to have to do, but it’s necessary and it has to be done.” Genest says Schwarzenegger will also call a fiscal emergency to deal with the current fiscal year deficit of roughly three billion dollars. “It will concentrate all the minds in Sacramento. It will make us all think we have to get something done in 45 days.” If, after 45 days lawmakers haven’t addressed the problem, all other legislative business must cease. But since this is the first time such an emergency has been called, Genest acknowledges it’s not clear exactly how to determine lawmakers have met that requirement.