LAO: State Budget Another 8 Billion In the Red

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(Sacramento, CA)
Friday, March 13, 2009
California’s budget has a new eight billion dollar hole.  That’s the word from the non-partisan legislative analyst, Mac Taylor.  And it opened up quickly.  Taylor the state’s economy continues to deteriorate:  tax revenues are down, job losses are mounting and the markets have taken a beating.  Taylor says that means lawmakers will have to come up with another eight billion dollars – either in revenue or cuts – because the state is required to have a balanced budget.  Taylor says there are other risks to the state’s fiscal picture, too.  About six billion dollars in state revenue – mostly from the lottery – is riding on the passage of several ballot measures this May.  And Taylor says the outlook doesn’t get much better for some time.  He says without major action by the legislature, the deficit will be back to 26 billion by 2013.