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Davis Calls Lawmakers Back To Deal With Deficit

Governor Davis is calling the Legislature into special session to deal with the state’s enormous budget deficit.

California is facing a deficit that’s expected to exceed $21 billion. Davis says he will propose $5 billion in midyear cuts before the December 9th session to deal with the growing shortfall.

Davis calls the problem “serious enough that it requires immediate actions.”

The governor isn´t giving any specifics about the cuts. But he did say he won´t rule out tax hikes or education cuts. His aides say he will focus first on cutting programs.

Davis will present his budget plan for next year on January 10th – shortly after he is sworn in for his second term.