Getting your player ready...
SACRAMENTO, Calif. — Gov. Arnold Schwar- zenegger’s administration on Wednesday issued its latest plan to close the state’s $41.6 billion budget deficit, calling the state’s declining fiscal health “a major crisis.”
State finance officials say California will run out of money sometime in February and will have to start issuing IOUs to employees and contractors — and to taxpayers in line for refunds.
The proposal calls for $14.3 billion in tax increases and other new revenue and $17.4 billion in spending cuts over the next 18 months. It also relies on borrowing and a plan the Legislature approved in early 2008 to sell bonds keyed to the future value of the state lottery.
