Gov. Arnold Schwarzenegger is calling for a temporary 1.5-cent increase in the state sales tax to help close an $11.2 billion deficit in the state budget, as well as new taxes on liquor and oil production.
Schwarzenegger on Thursday also proposed one-day-a-month unpaid furloughs for state workers for the next 19 months, as well as rescinding two of the workers’ 13 paid holidays
In calling the Legislature into special session to deal with the deficit, Schwarzenegger said it was vital for legislators to act swiftly.
“In the six weeks since I signed our last budget, the mortgage crisis has deepened, unemployment has increased and the stock market has lost almost 20 percent of its value,” Schwarzenegger told a news conference. “We have drastic problems that require drastic and immediate action – we must stop the bleeding right now.”
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