Latest news: Arnold critcizes legislature-and Republicans
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California now faces an unprecedented $41.8-billion budget gap by July 2010, with the cascading economic crisis forcing state economists to increase the already dismal projections they made just a few weeks ago, according to documents obtained by The Times.
Gov. Arnold Schwarzenegger faulted legislators -- particularly Republicans -- for continued inaction in addressing the situation.
"When you have a crisis, the most important thing is to make a decision," Schwarzenegger told reporters at a Capitol news conference Wednesday. "The worst thing is not to make a decision. The most costly thing we can do is not to take any action."
Over the last month, Democrats have reluctantly agreed to make some cuts in social service programs to deal with the deficit, which is now expected to reach $14.8 billion by June 30, the end of the current fiscal year -- one-third higher than forecast in November.
But the Republicans, who control enough votes to block any budget plan, have refused Schwarzenegger's and the Democrats' insistence that spending cuts be matched by new taxes.
Republicans said they were planning to lay out their own plan to deal with the deficit next week. So far, none of the ideas that they have suggested publicly, including increased calls to reduce "waste, fraud and abuse" in state government, would come anywhere near erasing the budget hole, independent fiscal experts say.At his news conference, Schwarzenegger displayed a clock that he said showed the cost of lawmakers' failure to act on the budget. It was ticking at a rate of $1.7 million an hour. The governor said he would place the clock -- which also includes a tally of how many days legislators have gone without action since he first called them into special session, 35 days ago as of Wednesday -- outside his Capitol office.
"They met, they debated, they postured and they did nothing," Schwarzenegger said. " . . . And that was after being three months late already with the budget this year. If that isn't a shameful performance, I don't know what is."
The latest fiscal projections did not appear to have any immediate effect on the impasse.
In a statement released by his office, Assembly minority leader Michael Villines (R-Clovis) disputed charges that Republicans were not negotiating.
"Just this week, we urged lawmakers to review fast-growing areas of state government for savings," he said.
But the Republicans did not recommend specific cuts in those programs, which include in-home supportive services for the ill and disabled, healthcare for those in poverty, the courts and programs for the developmentally disabled.
Senate President pro tem Darrell Steinberg said in his own statement: "We need partners, not partisans, at the negotiating table."
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Democrats have already shown," he also said, "that we are more than ready to meet Republicans halfway by voting for a fiscal plan of half cuts and half revenue increases in November."