UK Today News: California Facing Strong Fiscal Deficit – ‘Fiscal Emergency’ Declared
The Governor of California, Mr. Arnold Schwarzenegger, has declared that his state, California is under a strong fiscal emergency and has demanded the lawmakers to release a new state budget, which is almost a month overdue. The Californian economy is the eight largest economy in the world.
California is facing a budget deficit worth $19 Billion, and Mr. Schwarzenegger has stated that if a new budget is not passed, then by October the state would literally be out of Cash.
He has also ordered the state government employees to have three day of unpaid leave in the month, and paid a minimum wage to 200000 state workers, for the reason there has been no budget passed from the state.
In the month July 2009, Mr. Schwarzenegger had announced the first fiscal emergency of the state. He made the statement that each day that passes in California which is undergoing a budget deficit of $19 Billion, is bringing the state closer and closer to a fiscal meltdown.