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Davis Gives State Of The State Today

Governor Gray Davis is in the hot seat today.

His State of the State address may be the most important of his career.

As Davis took office for his second term this week, California faces a $34.8 billion budget deficit. Davis will have to fix the state economy with heavy cuts in spending and probably some tax increases when he delivers his speech today and unveils his budget plan Friday.

Davis proposed $10 billion in midyear cuts last month. He hopes to create 500,000 jobs in the next four years. He has also set forth a plan to speed up construction of bond-funded school and housing projects. Today€™s speech to a joint session of the Legislature will be Davis´ fifth.