Sprinklers spray water on a Los Angeles lawn, June 29, 2007. REUTERS/Mario Anzuoni 

SAN FRANCISCO (Reuters) – California Governor Arnold Schwarzenegger on Friday declared a state emergency due to drought and said he would consider mandatory water rationing in the face of nearly $3 billion in economic losses from below-normal rainfall this year. As many as 95,000 agricultural jobs will be lost, communities will be devastated and some growers in the most economically productive farm state simply are not able to plant, state officials said, calling the current drought the most expensive ever. Schwarzenegger, eager to build controversial dams as well as more widely backed water recycling programs, called on cities to cut back water use or face the first ever mandatory state restrictions as soon as the end of the month. "California faces its third consecutive year of drought and we must prepare for the worst — a fourth, fifth or even sixth year of drought," Schwarzenegger said in a statement, adding that recent storms were not enough to save the state. … Concern about California’s tight water supply is on the upswing at the same time as officials in the state capital of Sacramento rally behind the idea of creating jobs with public works spending. Unemployment in the most populous state rose to double digits — 10.1 percent — in January. Water planners and environmentalists are also broadly in agreement that climate change is creating a more erratic climate that could lengthen dry spells.

California declares drought emergency