-->Schwarzenegger Declares Fiscal Crisis

Schwarzenegger Declares Fiscal Crisis
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By TOM CHORNEAU, Associated Press Writer

SACRAMENTO, Calif. - Gov. Arnold Schwarzenegger (news - web sites) declared California in a fiscal crisis Thursday and invoked emergency powers that allow him to make spending cuts without the Legislature's approval.



The move comes as local governments in the state edged closer to financial meltdown following the loss of millions of dollars a day in revenue resulting from Schwarzenegger's decision to cut a car tax.


Schwarzenegger imposed $150 million in spending cuts Thursday to provide the funds to local government.


"I had to do this," Schwarzenegger said at the press conference Thursday.