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Facing a twenty billion dollar state budget shortfall California Governor Arnold Schwarzenegger is asking Washington.
For what some are calling.
Flat out -- to the tune of nearly seven billion dollars he however doesn't like that term but really get it whatever you wanna call -- and perhaps just as importantly.
We get it in time.
John Chung -- the state of California meaning he accounts for and controls the disbursement.
Of all state -- he's joining me in a Fox Business exclusive good to see -- John thank you for being here.
Happy new year -- thank you to first do you believe the state will get the money he's asking for.
I believe that it is very uncertain and perhaps unlikely.
Both senator Feinstein and senator boxer have indicated that California will not -- be the recipient the ball six point nine billion dollars.
That the governor has placed in his budget.
What does that mean for the state the clock is ticking -- analysts worried that if there were negotiations.
-- that amount or less that it could drag on when does the state run out of money and do you think that the state should get this money.
Well -- the governor also has the -- back up plan there are severe consequences.
With some of the proposals were talking about eliminating.
Insurance for low income children.
Assistance for individuals who need educational assistance.
It's clear that the governor and legislature need to learn from last year and not repeat last years mistakes where they took.
Too long to act.
OK but when does the money run out John I think that people are looking about the same whether they get it.
What happens and if that clock is ticking when does it beep and say that's it.
Well we will have some stress.
-- -- challenges.
Come march April of this year and then clearly at the governor legislature do not put -- to -- this sound solutions we are gonna have magnificent challenges this summer.
I don't know what it's gonna take for California -- I'm a native you know that to wake up and start look it's not going to be comparable but.
The governor says this isn't a bailout that it's simply his effort to and I quote here collect.
What is owed to the state to -- it somewhat of a complex disparity between what California receives from Washington.
Compared to other states really doesn't want to appear like he's holding -- a tin cup begging but is this just grasping at straws on his part.
Well I think the governor has some legitimate.
Issues the fact that the state is in fact paying for some.
Activities such as the incarceration -- undocumented workers.
That is a federal charge however.
We have to understand we can't get into huge policy disputes with Washington DC that is gonna have tremendous consequences on the cash for the state of California.
We still have to pay for essential services such as education.
Health care of public safety and that it's clear that the governor and legislature even if the federal government does not happen timely.
They need to take prompt immediate action to -- the like the safety.
And the welfare of all to -- eight million Californians.
Yeah I mean -- that's what it's -- -- largest economy in the whole world but it's got the fourth highest unemployment second highest foreclosure rate third highest taxes in the nation.
Yet the financial picture continues to be in total and utter disarray so when I look at this picture -- -- what.
What can we do it and let's just say let's say the federal government says sorry you don't get the money.
What it'll be the first thing Californians will feel you just outlined there could be small kids you know what we're gonna take a quick break we'll be right back which on child stay tuned.
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