RTTNews - California Governor Arnold Schwarzenegger declared a state of emergency in the state on Wednesday, calling a legislative special session in order to fix the state's budget crisis.

After the California legislature failed to pass a comprehensive solution to fix the state's entire $24.3 billion deficit before Wednesday, the start of the new fiscal year, Schwarzenegger proclaimed a fiscal emergency.

Though the legislature failed to solve our budget problem yesterday, rest assured that solving the entire deficit remains my first and only priority, Schwarzenegger said in a statement. I will not rest until we get it done. I will not be a part of pushing this crisis down the road--the road stops here.

According to the statement, Schwarzenegger has also ordered three unpaid furlough days a month for California state offices through June 2010 in order to save cash for vital state functions.

The special legislative session called by Schwarzenegger falls under California's Proposition 58, which gives the legislature 45 days to pass and send bills that address California's budget crisis.

If a solution has not been passed after 45 days, the legislature cannot adjourn or act on any other bills until California's fiscal problems are addressed.

California's State Controller John Chiang is also expected to begin issuing IOUs to state vendors, instead of payments. He has previously warned that California could run out of money by the end of July.

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