SACRAMENTO – On Thursday, California's new governor issued a proclamation reaffirming the fiscal emergency declared by his predecessor's administration last month.

Gov. Jerry Brown's proclamation – which follows former Gov. Arnold Schwarzenegger's Dec. 6 declaration – underscores the need for immediate legislative action to address California’s massive budget deficit.

He identifies as the source of the fiscal emergency the current fiscal year's budget imbalance, which he said is causing budgetary and cash deficits in fiscal year 2011-12.

On Jan. 10, just a week after taking office, Brown released a proposed budget package that calls for deep cuts to many services, would phase out redevelopment and asks for voters to approve a number of tax extensions in a June special election, as Lake County News has reported.

Brown's fiscal emergency declaration notes that “without corrective action” the combined operating deficit for fiscal year 2010-11 and fiscal year 2011-12 is $25.4 billion, revenues are $3.1 billion lower than were projected at the time of the 2010 Budget Act and the passage in November of Proposition 22 created an additional budget shortfall of $1.6 billion.

The declaration states that “decisive action is required to solve the State’s persistent and severe budget problems, continue economic recovery, promote job growth, and preserve public education and the quality of life for all Californians.”

Brown said that general fund revenues for the current fiscal year will decline substantially below the estimate of general fund revenues upon which the budget was based, and general fund expenditures will increase substantially above the estimate of general fund revenues.

Those factors, he said, will create a carry-over deficit affecting the cash reserves and the budget for fiscal year 2011-12.

Brown said his Thursday proclamation and the legislation he's proposing to address the budget supersedes Schwarzenegger's Dec. 6 proclamation.

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