California Governor Arnold Schwarzenegger leaves a news conference at the State Capitol in Sacramento, July 1, 2009. " title="budget-emergency-2" width="515" height="343" class="size-full wp-image-33316" /> California Governor Arnold Schwarzenegger leaves a news conference at the State Capitol in Sacramento, July 1, 2009. BY JIM CHRISTIE SAN FRANCISCO - California Gov. Arnold Schwarzenegger declared a fiscal emergency on Wednesday, forcing lawmakers to tackle a budget gap that has raised the prospect of drastic measures to keep the state working. Lawmakers debated late into the night Tuesday but could not agree on a plan to balance California’s budget — now showing a deficit of $26.3 billion — in time for the new fiscal year, which began on Wednesday. That left state officials with no choice but to prepare for suspension of... [read full story]
