Newly-installed California Gov. Jerry Brown declared a state of fiscal emergency on Thursday, underscoring the need for quick legislative action on the state's massive budget deficit. Without corrective action, he said, California's combined deficit for this year and the next will be $25.4 billion.
The fiscally struggling state hopes that investors concerns over its troubles will be offset by their desire for yield. Governor Schwarzenegger has called a special legislative session to address a deficit now projected to be more than $25 billion over the next 18 months.
California state workers, feeling expendable, plan to use their mandated "furlough Friday" to protest at theaters across the state showing The Expendables, an action flick with an all-star cast including a cameo by their boss, Gov. Arnold Schwarzenegger.