Schwarzenegger set for 'fiscal emergency'

LONG BEACH, Calif., Dec. 14 (UPI) -- California Gov. Arnold Schwarzenegger said Friday he will declare a "fiscal emergency" in January in the face of a budget shortfall estimated at $14 billion.

Such a declaration would enable Schwarzenegger and the Legislature to fast-track spending cuts and other budget solutions, The Sacramento Bee reported.

"We are going to call this January for a fiscal emergency when the legislators come back," Schwarzenegger told reporters in Long Beach, Calif. "We will make that announcement next week some time with the legislative leaders."

The declaration will be the first time Schwarzenegger has used the authority he asked voters to establish through passage of Proposition 58 in 2004, the newspaper said. The proposition authorizes the governor to declare an emergency and call the Legislature into special session when revenues fall "substantially" short of projections at the time a budget was signed.

If lawmakers do not send legislation addressing the budget crisis to the governor within 45 days, they would be barred from taking action on any other bills -- or from adjourning -- until they do so, the Bee said.

Schwarzenegger Friday estimated the budget shortfall was between "$10 billion and $14 billion."