Thread: Calif. Gov Sees Wider Deficit Amid 'Tough Year'

Calif. Gov Sees Wider Deficit Amid 'Tough Year'

Friday, April 25, 2008 1:06 PM

SACRAMENTO -- Saying California was going through a "very, very tough year," Gov. Arnold Schwarzenegger on Thursday warned the nation's most populous state faced even bigger budget deficits than previously projected.

The Republican governor said he expects the state's budget deficit to reach more than $10 billion in the next fiscal year, following a $7 billion shortfall this year, as he diverted from topic while addressing a conference on DNA crime technology in the state capital Sacramento.

"Every time we look at our revenues, they're short. And so this fiscal year our revenues are going to be short by $7 billion," he said. "Next fiscal year, probably more than $10 billion short.

"So it just shows to you this is why we have such an extraordinary budget deficit and this is why we had to make all kinds of cuts across the board."

In February, state officials had hoped that nearly $7.5 billion in budget cuts, bond sales and other financial measures would result in a balanced budget for the current fiscal year and a deficit of $7 billion for the coming year.

A budget plan unveiled by Schwarzenegger in January had originally estimated a deficit for the current and next fiscal years at a total of $14.5 billion.

A weakening economy, compounded by an increase in housing foreclosures and weakness in the real estate market have hurt the state's revenues.

"I think California very rarely has been in this kind of a situation before," Schwarzenegger said before citing several reasons for the money woes.

"One is that our spending formulas require us always to spend more money. We see increases of 10 percent of our spending regardless of what our revenues are," he said.

"The second thing is that the economy is down because we have, of course, the subprime mortgage crisis; the housing market is down because of that and it has a spillover effect in so many other areas."

STATE REVENUES SUFFER

In March, California received nearly $1.2 billion less than projected. Schwarzenegger has long said that he opposes new taxes.

The state's Legislative Analyst's Office in an update report on Thursday said, "Continuing negative economic news raises concerns that previous revenue forecasts may need to be significantly reduced. The weak housing market may further dampen property tax growth."

Schwarzenegger in January had unveiled a $141 billion budget plan for the fiscal year beginning in July. It included an across-the-board spending cut of 10 percent and the sale of $3.3 billion in economic recovery bonds.

Schwarzenegger is scheduled to present a revised budget proposal in mid-May that reflects updated tax revenue numbers -- including for the vital April month when many file their annual tax returns.

In February, Fitch Ratings warned that California was at risk of a credit rating downgrade if state officials failed to address budget shortfalls promptly.

http://www.newsmax.com/us/Calif_Gov_See ... 90952.html

would be nice if Mr.Body Builder , turned Actor , turned Producer , turned Governator . Would Fess up with the Truth . Just once say it Conad ! The Illegals have busted the state and they busted my heart . They bust everything . Where Busted

The bubble has burst. The balloon has popped. The gravy train for the illegals has come to the end of the line. There is no way this state can welcome, shelter and provide for the thousands of illegal aliens streaming into the state without the good times coming to an end. They won't admit it but its true. Illegal aliens cost the state money. More money than the state can afford. The money spent on them was supposed to be spent on the legal citizens. Period.

Arnold is in denial...illegals are costing calif. billions and tens of thousands of middle class Americans are moving out every year because they just can not take it anymore.

That state does nothing for the citizens (legal residence) of that state, they take take take taxes from them and give them nothing in return except expect them to take care of illegals.

Arnie knows exactly what he's doing. He's a dyed in the wool Liberal. He's all for amnesty. Besides, he's married to a Kennedy. That says it all for me. (quote) "Show me who your friends are, and I'll show you who you are". In this case, it's his wife, I'm not sure they're friends.

Saying California was going through a "very, very tough year," Gov. Arnold Schwarzenegger on Thursday warned the nation's most populous state faced even bigger budget deficits than previously projected

.

Yet he still refuses to mention illegal invaders and the negative impact they continue to have on the California Economy!

I guess the illegal invaders are going to be protected, irrespective of what it will cost the State of California...

Disgraceful!

I guess the illegal invaders are going to be protected, irrespective of what it will cost the State of California...

Disgraceful!

It's truly shameful ! Knowing they've sold their souls, I don't know how they look at themselves in the mirror !

BTW.......when asked about the illegals, and what they're costing the state of CA, Arnie said it would be a " mistake to blame the illegals ' !! Imagine, in the face of the stats released by LA County Supervisor Mike Antonovitch laying it all on the line, he (Arnie) still had the balls to make that comment.