Schwarzenegger warns of deepening crisis facing California

Special Report:Global Financial Crisis　

LOS ANGELES, Dec. 22 (Chinese media) -- California Governor Arnold Schwarzenegger on Monday warned of a deepening crisis in the state due to legislature's failure to pass a real and comprehensive budget solution.

"Due to the legislature's continued failure to provide a real and comprehensive budget solution, 2,000 infrastructure projects in California valued at more than 16 billion dollars are in jeopardy and tens of thousands of California jobs are immediately at risk," the governor said in a statement.

California, the most populous state in the nation, is 14.8 billion dollars in the red, and the budget deficit is projected to grow to nearly 42 billion dollars in 18 months.

Schwarzenegger has declared a fiscal emergency, called the Legislature into a special session to find ways to cut spending and raise revenue, and issued an executive order that could result in unpaid furloughs for state workers.

Last week Schwarzenegger rejected tax increases and cuts in state services that Democrats got through the Assembly.

"Last week the legislature asked Californians to pay higher taxes and fees without making a real attempt to put Californians back to work and help them keep their homes," the governor said.

"This not only halts job creation and economic stimulus across California, but it also impacts our quality of life," said Schwarzenegger.

"The time for political posturing is over -- it's time the state legislature starts solving problems instead of creating them."

State Treasurer Bill Lockyer noted the California cannot sell bonds for the 2,000 infrastructure projects while the state's credit rating is the lowest in the nation.