Governor Brown Issues Proclamation Reaffirming Fiscal Emergency


1-20-2011

SACRAMENTO – Governor Jerry Brown today issued a proclamation reaffirming the fiscal emergency declared by the previous administration on December 6, 2010. This proclamation underscores the need for immediate legislative action to address California’s massive budget deficit.

Text of the proclamation:

FISCAL EMERGENCY PROCLAMATION

BY THE GOVERNOR OF THE STATE OF CALIFORNIA



WHEREAS on the 6th of December, 2010, pursuant to Section 10(f) of Article IV of the Constitution of the State of California, Governor Arnold Schwarzenegger; proclaimed a fiscal emergency; and

WHEREAS that proclamation contained certain findings supporting the declaration of a fiscal emergency; and,

WHEREAS on January 10, 2011, I released my proposed budget for the State of California and that budget reflected current economic, budgetary, and cash information; and

WHEREAS without corrective action the combined operating deficit for Fiscal Year 2010-11 and Fiscal Year 2011-12 is $25.4 billion; and

WHEREAS revenues are $3.1 billion lower than were projected at the time of the 2010 Budget Act; and

WHEREAS the passage, in November 2010, of Proposition 22 created an additional budget shortfall of $1.6 billion; and

WHEREAS 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.

NOW, THEREFORE, I, EDMUND G. BROWN JR, Governor of the State of California, in accordance with Section 10(f) of Article IV of the Constitution of the State of California, HEREBY DETERMINE that General Fund revenues for Fiscal Year 2010-11 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, and further, that this will create a carry-over deficit affecting the cash reserves and the budget for Fiscal Year 2011-12.

I, EDMUND G. BROWN JR, Governor of the State of California, HEREBY DECLARE and REAFFIRM that a fiscal emergency exists.

I, EDMUND G. BROWN JR, Governor of the State of California, HEREBY IDENTIFY THE NATURE OF THIS FISCAL EMERGENCY to be the projected budget imbalance for Fiscal Year 2010-11, which is causing budgetary and cash deficits in Fiscal Year 2011-12.

I, EDMUND G. BROWN JR, Governor of the State of California, further determine, in accordance with the findings set forth herein, and the legislation that I am proposing to the Legislature in connection with this proclamation, that this proclamation dated January 20, 2011, supersedes the proclamations issued on December 6, 2010, for the purposes of Section 10(f) of Article IV of the Constitution.



IN WITNESS WHEREOF I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this 20th day of January 2011.

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EDMUND G. BROWN JR.
Governor of California


ATTEST:

__________________________________
DEBRA BOWEN
Secretary of State


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