IN THE RED

California in Fiscal Emergency

After announcing that California's budget deficit has grown $2 billion to $26.3 billion, Gov. Arnold Schwarzenegger declared a state of fiscal emergency on Thursday, pointing to his Congress' inability to pass a budget ahead of last night's midnight deadline. The fiscal emergency designation can force lawmakers' hands As he signed signed an executive order forcing 220,000 state employees to take a third furlough day without pay this month, Schwarzenegger's declaration of fiscal emergency means state lawmakers have 45 days to resolve the budget, or they won't be allowed to touch any other legislation.