Budget Shortfall Grows

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(Sacramento, CA)
Wednesday, February 20, 2008

Legislative Analyst Elizabeth Hill says California’s budget shortfall went from 14.5 billion to 16-billion dollars. That’s largely due to declining tax revenues.  Hill says lawmakers and the Governor have now cut the problem in half with mid-year reductions.   She’s proposing her own remedies to address the remaining eight billion dollar deficit—but warns they’ll be tough to take. 

 “They basically affect all Californians in some way and we recognize that a sacrifice would have to be made by all Californians in order for the state to get its fiscal house in order…”

Hill’s proposal includes raising fees— for U.C. and Cal State students and park visitors.  She also says lawmakers should reduce some tax breaks, including the one for dependent children.