Revenue Decline Causes Trouble to State Employees

October 8, 2008

Sacramento, CA — Governor Arnold Schwarzenegger is going to make an action plan that will enable the state to continue paying thousand of state employees even in the face of mounting financial problems, specifically declining revenues.

The governor already asked the federal government to give cash that the state will use to continue paying teachers and law enforcement, which include California Highway Patrol Officers.

Adding to the problem is the decrease in California’s unemployment rate, which is now nearly down by eight percent.

State Controller John Chiang said the state’s first quarter revenues were down by more that $1 billion from the previous projections.

The state faces the danger of running out of money before the moth ends, said Chiang.

Meanwhile, State Treasurer Bill Locker also tried to find ways to raise cash. He said he was trying to raise the amount of $4 billion in short-term loans in short-term loans in order to keep the state financially afloat.