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California Governor Arnold Schwarzenegger told lawmakers at the Capitol that “California’s day of reckoning is here.”  Without any action, the state will run out of money in 14 days. Three months after the state budget was approved, California faces a $24 billion deficit (er that’s on a 90+ billion budget).

Schwarzenegger has already proposed massive spending cuts in social programs for the poor, education funding, healthcare and even the early  release of some of the states prisoners. He has also suggested the consolidation and elimination of several state departments and agencies.

Lawmakers must pass a balanced budget by June 15 for the state to obtain its annual loans from Wall Street. To make its payments, California must borrow money almost every summer because it pays out most of its funds in the first half of the fiscal year, from July to December, and receives most of its revenue in the second half.

Related posts:

1. California Unemployment Jumps to 11.2%; Highest Since 1976
2. Home Prices Plunge 18.5%; Another New Low
3. Schwarzenegger threatens to Layoff 10,000 State Workers
4. California on the Brink: Fiscal Emergency Declared, Deficit Sky Rockets, S&P Downgrade
5. Bank Bailout Money Being Used for Mergers