Governor Schwarzenegger says the state’s financial picture has deteriorated. He says the budget shortfall is now “much more” than the three billion that was previously estimated – so he’s calling a special session before a new legislature is sworn in December first. The Governor says the current crop of lawmakers should take it on.
“They have dealt with the problems throughout the year, with the economic decline and with the housing crisis and the shortfall in revenues and all of those kind of things.”
Schwarzenegger says during the session lawmakers should debate an economic stimulus plan, solutions to the foreclosure crisis and how to keep the state’s unemployment fund solvent. Assembly Speaker Karen Bass says legislative leaders will work out a deal before lawmakers are called back to town. They’ll have less than a month to get it all done. Schwarzenegger – as always - says he’s optimistic:
“Miracles do happen”
But Senate Leader Don Perata had a less rosy view of the situation:
“It’s going to be a miserable November, it really is, for all of us.”
Governor Schwarzenegger and lawmakers say they’re also forming a tax modernization committee to take a closer look at the state’s tax structure.