Agence France-Presse First Posted 12:26:00 07/02/2009 Filed Under: SAN FRANCISCO, California, United States—California Governor Arnold Schwarzenegger formally declared a fiscal emergency in the largest US state Wednesday and called state legislators back into a special session to close a budget deficit expected to reach $24 billion over the next two years. The move came as California, which has a $2.8-billion cash shortage, said it would not be able to pay some of its bills starting Thursday. Schwarzenegger said in his proclamation that the cash shortage will grow to $6.5 billion by September unless the state legislature makes huge cuts in services ranging from education to poverty programs. If the state is unable to pay its bills, the governor said: "Californians will be placed at serious risk because essential public...
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