HealthCare the immediate focus...BD 

One thing the governor said lawmakers could do to help ease the budget pinch is to pass his health care plan. Schwarzenegger estimated that his plan would bring in an additional $4 billion in federal Medi-Cal funding - money he suggested would prevent otherwise inevitable cuts to social services programs.image

One thing the governor said lawmakers could do to help ease the budget pinch is to pass his health care plan. Schwarzenegger estimated that his plan would bring in an additional $4 billion in federal Medi-Cal funding - money he suggested would prevent otherwise inevitable cuts to social services programs.

SACRAMENTO - Facing a projected $14 billion budget deficit, Gov. Arnold Schwarzenegger on Friday said he will declare a fiscal emergency, which will allow the governor and lawmakers to cut spending more quickly and also sets the stage for slashing state services and programs - perhaps by as much as 10 percent.

Legislative leaders said they will meet with Schwarzenegger next week to begin working on what the governor described as "across-the-board" cuts. His aides said departments have been told to prepare for a range of possible cuts, with 10 percent a central figure.

"We are going to call this January for a fiscal emergency when the legislators come back," Schwarzenegger said. "We will make that announcement next week sometime with the legislative leaders."

San Jose Mercury News - Fiscal emergency for California

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