SACRAMENTO - Assemblywoman Anna Caballero (D-28) today issued the following statement in response to Governor Arnold Schwarzenegger's State of the State address:

"It's been clear for many weeks that the state faces a significant fiscal crisis, affecting both our current year budget and the budget for next year. The huge numbers of home foreclosures, the slowdown in home building and home sales are all contributing to a slowdown in our economy, and this crisis. California has also faced several disasters, from strong winds and fires in southern California to ferocious winter storms. All of these factors are affecting our economy and ultimately the state budget."

"Governor Schwarzenegger has declared a fiscal emergency, and we will soon hear more details of his plans to solve the crisis in both this fiscal year, and in the budget for next year. Much of this is likely to involve difficult cuts in services. I'm familiar with this challenge – after all, I was a mayor for eight years. I know what it is to have to make these tough decisions."

"One promising, long-term solution outlined by the governor could be greater use of public-private partnerships to fund and build certain types of fee-producing infrastructure. I support this approach, for both the state and for local agencies. As Chair of the Assembly Committee on Local Government, I am carrying two bills relating to the use of public-private partnerships by local agencies:

AB 1261 amends existing law to clarify the state rules for local public-private partnerships. It is in the Senate Appropriations Committee.

AB 1756 creates an Office of Local Public-Private Partnerships at the state Business, Transportation and Housing Agency, to assist local agencies interested in public-private partnerships. I introduced this bill on January 7."

"The fiscal crisis means that we face a tough year. We need to work together for long-term solutions that reduce the impact of budget cuts on people who depend the most upon state services. And we need to work for permanent solutions to fix the underlying, ongoing factors that contribute to the state's fiscal problems."