Oct 29, 2008 5:43 pm US/Pacific
Schwarzenegger Says Deficit Continues To Grow
SACRAMENTO (AP) ―
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California Gov. Arnold Schwarzenegger speaks during a recent news conference.
Justin Sullivan/Getty Images
Gov. Arnold Schwarzenegger on Wednesday said California's budget deficit widens by the day, leading him to warn education, law enforcement and health care groups that they will face midyear cuts.
"It's just the math; it's not me," the governor said outside the Capitol while campaigning for Proposition 11, the redistricting initiative on Tuesday's ballot.
Schwarzenegger will call lawmakers back for a special legislative session on the budget and the state's economy the day after the election. He met with law enforcement representatives in his office Wednesday to prepare them for cuts. He did the same with education leaders Tuesday and planned to meet with more groups in the coming days.
The revenue shortfall in California's five-week-old budget has grown beyond the $3 billion projected by state officials earlier this month. Schwarzenegger said the deficit is "at least $5 billion more than anticipated, and that number can even be higher."
The administration is expected to give the latest projections on Friday.
Nick Warner, a lobbyist for the California State Sheriffs' Association and the Chief Probation Officers of California, said the governor stressed the severity of the crisis and pledged to work cooperatively.
"He didn't guarantee them to stay whole," Warner said.
Schwarzenegger has indicated support for a sales tax increase
but suggested that won't make up enough of the revenue gap. He pitched a temporary increase last summer but was unable to sway Republicans, whose votes are needed to reach the two-thirds majority required to pass a state budget in the Legislature.
"Since everyone has to take a haircut here, it's natural that education gets hit, law enforcement gets hit, prisons (are) gonna get hit, and also health care is going to get hit," the governor said during a brief question-and-answer session with reporters after the redistricting rally.
Also on Wednesday, a federal judge in Sacramento said he will decide within a week whether Schwarzenegger's minimum wage order from last summer should be heard in his court.
U.S. District Court Judge Morrison England Jr. heard arguments for the first time on the governor's order to cut rank-and-file state worker pay to the federal minimum wage of $6.55 an hour. The governor issued the order to save money during the extended budget standoff.
State Controller John Chiang refused to comply and continued to issue regular paychecks. Attorneys for the Schwarzenegger administration initially filed the case in state court to force Chiang to comply.
The state controller and labor attorneys argue the case should be heard at the federal level because it deals with labor rights.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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