The governor of California has declared a fiscal emergency in the US state to address a budget deficit of some $24.3bn (£14.5bn).
Governor Arnold Schwarzenegger also ordered many state offices to close for three days each month until June 2010, with staff unpaid for those days.
California has been one of the US states hardest hit by the recession.
The moves comes after state legislators missed a 1 July deadline to approve a budget for the coming financial year.
State Controller John Chiang has said the failure to meet the deadline means the state deficit will increase by up to $6.5bn by September.
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Stop spending more than you make!!!!!
Inmates running the assylum.