Gov. Arnold Schwarzenegger announced this morning that the state's financial crisis has worsened substantially in recent weeks, with the projected budget deficit growing by another $3.6 billion.
The news from the governor, delivered in a hastily arranged press conference, comes as lawmakers have yet to heed his call to address the problem in emergency sessions of the Legislature. He said the state will have to pull the plug on billions of dollars of road and school construction projects if action is not taken by month's end.
By the end of February, the governor said, the state will be out of cash and forced to pay its bills with IOUs. The state's projected budget gap through mid-2010 now stands at more than $30 billion.
--Evan Halper and Jordan Rau