SCHWARZENEGGER SAYS CALIFORNIA FACES INSOLVENCY WITHIN WEEKS

"The truth is that California is in a state of emergency. Addressing this emergency is the first and greatest thing we must do for the people," he said during a relatively brief address to a joint session of the Legislature. "The $42 billion deficit is a rock upon our chest and we cannot breathe until we get it off."

Schwarzenegger warned that California, the world's eighth largest economy, faces insolvency within weeks if lawmakers fail to close the widening deficit.

State financial officials said California will run out of cash in February. If that happens, it will have to send IOUs to state contractors and taxpayers expecting refunds.

http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/01/14/state/n175940S09.DTL&type=politics

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