For more information on California's fiscal crisis ($20 billion annual operating shortfall through 2015/2016) read this post from 11/17/2010.
"Governor Schwarzenegger Presents Special Session Budget Plan
Declares Fiscal Emergency, Calls Legislature into Special Session to Address Deficit
Governor Arnold Schwarzenegger today declared a fiscal emergency and called the legislature into a special session to address California’s budget deficit and presented a package of solutions to help solve it.
“Our state is again facing a budget deficit that will force difficult decisions by California’s elected officials. If there is one thing we have learned over these past few years, it is that the longer we wait to tackle the problem, the larger and more difficult it is to solve,” said Governor Schwarzenegger. “That is why I have called a special session today, so the legislature can get a head start on the problem. California taxpayers cannot afford another lengthy delay. I look forward to working with Republicans and Democrats to get this done.”
The package of solutions presented today includes program reductions, alternate funding solutions and fund shifts to tackle the deficit. For specifics on the Governor’s proposal, please go to www.dof.ca.gov."
Special Session 12/2010 - Proposed Expenditure Reductions