New California Governor Arnold Schwarzenegger on Wednesday declared financial emergency in the state and invoked emergency powers to impose US $150 million in spending cuts without legislature's approval.
"I had to do this," Schwarzenegger said at a news conference.
The move comes as local governments in the state edged closer to financial meltdown following the loss of millions of dollars a day in revenue resulting from Schwarzenegger's decision to cut the car tax.
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Since Schwarzenegger cut the car tax, cities and counties have lost more than $300 million collectively. The money pays for a variety of services, especially for police and fire services.
Agencies