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Schwarzenegger to declare fiscal emergency

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Gov. Arnold Schwarzenegger is scheduled to welcome the new Legislature on Monday by declaring a fiscal emergency and ordering it into a special session.

The new crop of lawmakers is scheduled to be sworn in at noon Monday, and Schwarzenegger has called a 1 p.m. news conference to lay out his plans to close a gap of almost $6 billion in the current fiscal year, which ends June 30.

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Schwarzenegger spokesman Aaron McLear declined to discuss what would be in the plan, but he did say there would be no tax increases. He did not say whether other types of revenue might be included in the proposal.

But McLear said again the plan would include some ‘ugly cuts.’

After three years, all cuts are ugly,’ he said. ‘Anything that can be considered a decent solution is long gone.’

Lawmakers have been tepid in their response to Schwarzenegger’s call for quick action, with Democratic leaders saying they may wait for Jerry Brown to take office on Jan. 3 before addressing the budget problem.

Brown was in Sacramento on Monday, addressing the new Assembly Republican caucus over breakfast. Brown has his own budget conference scheduled for Wednesday.

-- Anthony York in Sacramento

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