[Update: Schwarzenegger declared a fiscal emergency and called the legislature into a special session. "Our state is again facing a budget deficit that will force difficult decisions by California's elected officials. If there is one thing we have learned over these past few years, it is that the longer we wait to tackle the problem, the larger and more difficult it is to solve," said Governor Schwarzenegger. "That is why I have called a special session today, so the legislature can get a head start on the problem. California taxpayers cannot afford another lengthy delay."]
California's lame-duck Governor Arnold Schwarzenegger is holding a 1:30 p.m. press conference to welcome the new legislature after several new members were sworn in at noon. He is also expected to declare a fiscal emergency and call a special legislative session. Above is the live feed from the Governor's office.