“SAN FRANCISCO, June 8 – California govenor Arnold Schwarzenegger, facing a state budget gap of $24.3bn, on Monday ordered a halt to funding for state contracts on everything from pencils to office space.
His order applies to all contracts signed since March 1, excluding those for public safety, and bars new contracts. Projects funded by bonds and federal stimulus dollars are also exempt.
The state is expecting the move to generate savings of $1.35bn, said Amanda Fulkerson, a spokeswoman for California’s State and Consumer Services Agency, which oversees the state’s contracting and purchases.”
Only $23 billion more to save.
