Regis Philbin
Jan 15th, 2009, 05:21 PM
http://www.bloomberg.com/apps/news?pid=20601087&sid=apH1RkLhuZ6M&refer=worldwide
Schwarzenegger Set to Deliver Somber State of State Address
By Michael B. Marois
Jan. 15 (Bloomberg) -- When Governor Arnold Schwarzenegger gave his first State of the State speech five years ago, he said California was heading toward bankruptcy because of record budget deficits he inherited. Now, it’s even worse.
Schwarzenegger’s sixth such address comes today as the state faces another record budget gap and political paralysis over how to fix it, and a month before California will begin to run out of cash, forcing officials to issue IOUs for only the second time since the Great Depression.
The governor has been holed up in marathon meetings with senior lawmakers all week, trying to come to an agreement before delivering the speech.
“It will be a very sober message,” said John Pitney, a political scientist at Claremont McKenna College in Claremont, California. “I don’t think we are going to hear any exuberant language. It’s going to be all about difficult choices.”
The yearlong national recession, tumbling stock prices and the effects of home foreclosures have torn a $42 billion hole in California’s budget, the largest shortfall in its history. Schwarzenegger’s fellow Republicans have blocked his proposal to raise taxes, which can’t be done without a two-thirds vote. Officials say the credit crisis means the governor can’t borrow the billions needed to avoid the cash shortage.
Schwarzenegger Set to Deliver Somber State of State Address
By Michael B. Marois
Jan. 15 (Bloomberg) -- When Governor Arnold Schwarzenegger gave his first State of the State speech five years ago, he said California was heading toward bankruptcy because of record budget deficits he inherited. Now, it’s even worse.
Schwarzenegger’s sixth such address comes today as the state faces another record budget gap and political paralysis over how to fix it, and a month before California will begin to run out of cash, forcing officials to issue IOUs for only the second time since the Great Depression.
The governor has been holed up in marathon meetings with senior lawmakers all week, trying to come to an agreement before delivering the speech.
“It will be a very sober message,” said John Pitney, a political scientist at Claremont McKenna College in Claremont, California. “I don’t think we are going to hear any exuberant language. It’s going to be all about difficult choices.”
The yearlong national recession, tumbling stock prices and the effects of home foreclosures have torn a $42 billion hole in California’s budget, the largest shortfall in its history. Schwarzenegger’s fellow Republicans have blocked his proposal to raise taxes, which can’t be done without a two-thirds vote. Officials say the credit crisis means the governor can’t borrow the billions needed to avoid the cash shortage.