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Governor brings budget fight to L.A.

December 22, 2008 9:31:10 AM PST
Governor Arnold Schwarzenegger is bringing is fight over the state budget crisis to L.A. on Monday.Schwarzenegger is trying to get lawmakers to pass a revised budget.

The state is in danger of running out of cash if the governor and state lawmakers can't come to terms on a revised budget.

Schwarzenegger will hold a news briefing near the 405 Freeway in Los Angeles to make a point about delays in funding for infrastructure projects due to California's budget crisis. Funding for hundreds of public works projects have been suspected until a budget is approved.

The governor is taking several drastic steps to conserve cash in a move that could lead to massive layoffs. He has ordered state agencies to reduce payroll by 10 percent, and has also called for a state hiring freeze.

Schwarzenegger has called the legislature back into session to work on the budget for the third time in two months. Last week he promised to veto an $18 billion package back by Democrats that he said didn't do enough.

California is nearly $15 billion in the red, and the budget deficit is expected to grow to around $42 billion.

Schwarzenegger has already ordered state employees to take two days off a month without pay, or a similar pay cut. In a letter to 235,000 workers, he said everyone must make sacrifices.

Union officials are considering a lawsuit to prevent job losses.


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