Schwarzenegger declares state of emergency; IOUs on the way |

Schwarzenegger declares state of emergency; IOUs on the way

SACRAMENTO, Calif. – California’s budget mess is getting worse by the day.

Gov. ArnoldSchwarzenegger has declared a fiscal state of emergency because of the financial morass and the state controller is issuing IOUs as early as today because of the growing budget deficit.

The dysfunctional California Legislature Wednesday and#8212; the first day of the new fiscal year and#8212; again failed to come up with a solution to dealing with the burgeoning deficit, which is now more than $26 billion.

The governor’s fiscal state of emergency declaration means California’s state offices will be closed three days a month to conserve cash. It means a third unpaid furlough day for 235,000 state employees.

If the Legislature fails to solve the deficit within 45 days, it cannot adjourn or act on other bills until the crisis is resolved.

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