California faces $21B deficit next year
November 18, 2009
SACRAMENTO, Calif. – A new forecast says California is facing a $21 billion budget gap this year.
In a multiyear forecast released Wednesday, the Legislature’s nonpartisan budget analyst says the state’s budget problems have reappeared just months after Gov. Arnold Schwarzenegger and lawmakers claimed to have dealt with the last crisis.
The report says many of the assumptions in their last budget failed to solve the problem, which will leave California $6.3 billion short in 2009-10.
Legislative Analyst Mac Taylor says the shortfall will be $14.4 billion for 2010-11. Taylor says state leaders will have to make more painful choices on top of the cuts they’ve already made.
The report suggests California’s economy is on the mend, but analysts don’t expect the state to recover for another year or two.