The S&P's downgrade of California's debt rating is a wakeup call to the state legislature, David Crane, special adviser for jobs and economic growth to Governor Arnold Schwarzenegger told CNBC on Thursday.
“Yesterday’s announcement from S&P is just a wakeup call that the Governor wants the legislature to act now on the budget which is why he called them into this special session,” he said. “Really what we need in California are just a few good legislators to follow the Governor’s lead and address these problems.”
Schwarzenegger's budget plan seeks to curb spending by $8.5 billion in addition to the $30 billion that was cut last year.
While state revenues are down to levels they were six years ago, said Crane, California pension costs have surged 2000 percent over the last ten years.