Last August, he predicted that the state would have a $4.1 billion reserve at the end of this fiscal year, but now predictions show that California will have a $10 billion deficit.
Schwarzenegger now says it's even worse than that:
Gov. Arnold Schwarzenegger said Friday he will declare a "fiscal emergency" in January to give him and the Legislature more power to deal with the state's growing deficit.
Schwarzenegger made the announcement Friday after meeting with lawmakers and interest groups this week to tell them California's budget deficit is worse -- far worse -- than economists predicted just a few weeks ago.
The shortfall is not $10 billion, but more than $14 billion -- a 40 percent jump that would put it in orbit with some of the state's worst fiscal crisis, those who have met with him said.
The change from $10 billion in the red to $14 billion is bad enough, but in four months, Arnold missed it by $18 billion!!!
Arnie promised spending cuts to get elected but after a few bloody noses from the Democratic legislature, which caused the problem in the first place leading the Grey Davis’ recall, he started caving in.
Now Arnie’s declared an emergency, which will force the legislature back into special session and Californians will have to grab their wallets, because they can expect a whole bunch of new taxes since the legislature have shown that they are incapable of cutting the budget and the voters have shown they are incapable of forcing change.
I last lived in California in 1992 and until I retired in 1995 I received demands for tax payment on income that was
- a. never earned in California and
- b.military pay exempted from state and local taxes.
All this while a PI I work with who's a retired CHP complains that retiring CHPers now are getting 100% pension while he "only" gets 80%
I have turned down two job offers to relocate to california in the past 7 years, mainly because of the crippling tax situation there; it appears it's about to get worse.
Unfortunately, Arnie has proven himself wildly incompetent. Not only has he failed to show enough backbone to stand up to a term-limited legislature, he apparently can't do math, either.