Estimated state budget deficit reaches $25.4 billion

[n2doc]

By Shane Goldmacher, Los Angeles Times
November 11, 2010
Reporting from Sacramento —
As Jerry Brown prepares to take over as governor, California faces a $25.4-billion deficit — far larger than state officials were projecting only days ago — the state's chief budget analyst said Wednesday.

The figure, projected over the next year and a half, results from billions of dollars in phantom savings approved by Gov. Arnold Schwarzenegger and legislators last month, more budget restrictions passed by voters last week and predictions of a "painfully slow economic recovery," according to the report from the nonpartisan Legislative Analyst's Office.

In addition, more than $8 billion in temporary sales, car and income taxes are set to expire in the coming year, and the federal stimulus program that has helped prop up schools, healthcare for the poor and other state programs also will soon disappear.

The report shows $20-billion annual shortfalls in future years as well.

"There is no good news," said Legislative Analyst Mac Taylor.

more
http://www.latimes.com/news/local/la-me-state-budget-20101111,0,90781.story

[mackerel]

1. If they'd only legalised mj we'd be taxing it right now.

[alanquatermass]

2. What will Jerry Brown do to attract -- and keep! -- California business?!

Right now this state is hemorrhaging businesses. They are the ones who hire people and without them, we're screwed.

What do you think Brown will do to make this happen?