Thread: California deficit reaches a staggering $25.4 billion

Budget analyst: California deficit reaches a staggering $25.4 billion

November 10, 2010 | 12:22 pm

California faces a far-larger budget shortfall than state officials were projecting only weeks ago. The deficit over the next year and half has soared to $25.4 billion, the state’s chief budget analyst said on Wednesday.

The startling figure means the state faces an even tougher budget challenge than it did leading up to the passage of the current spending plan, which was historically late, as lawmakers wrangled over how to close the gap for 100 days into the new fiscal year. The projected deficit is the equivalent of about 29% of this year’s general fund budget. It projects California continuing to struggle to raise enough revenues to fund basic services as the state experiences a "painfully slow economic recovery."

One main reason the deficit remains so large is that the spending plan signed by Gov. Arnold Schwarzenegger and approved by legislators 33 days ago relied on billions in accounting gimmicks, rosy assumptions and unlikely handouts from Washington, according to the report from the nonpartisan Legislative Analyst's Office.

The new $25.4-billion shortfall will confront governor-elect Jerry Brown from the moment he is sworn into office in January.

Brown is vacationing this week and was unavailable for comment. The day after his election, the Democratic former and future governor acknowledged the budget gap was “very daunting,â€

LOL they elected a democrat , i'm place my money on

RAISE TAXES .....

can't wait to see how that one plays out .

If they raise our property taxes millions of us will lose our homes.

$100,000 a Year Will Make you Go Broke with the California Tax System: Why California is a Fiscal Disaster. Broken Tax Structure built on Bubbles.

..It is amazing how little attention on a national scale the California debacle is getting. California alone is the 8th largest economy in the world and contributes $1.8 trillion a year to the national GDP. In the mainstream press, all you hear is sound bites of “there goes Californiaâ€

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By 2019 the total U.S. national debt is projected to be $18.4 trillion.

http://en.wikipedia.org/wiki/United_States_public_debt

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Originally Posted by marquis

LOL they elected a democrat , i'm place my money on

RAISE TAXES .....

can't wait to see how that one plays out .

Gov. Arnold Schwarzenegger challenged legislators Friday to chop billions more from the state budget
in a special session in December, adding that Democratic Gov.-elect Jerry Brown has said he backs that effort.

http://www.alipac.us/ftopict-218012.html