State Legislative Analyst Anticipates $21-Billion Deficit Over Next Two Years

Share |
(Sacramento, CA)
Wednesday, November 18, 2009
California’s deficit will reach nearly 21-billion dollars by 2011. 
That’s according to the gloomy budget forecast released today (Wednesday) by the State Legislative Analyst’s Office.

Capital Public Radio's Steve Shadley reports...
Non-Partisan Legislative Analyst Mac Taylor says the legislature has a very tough year ahead. 

He estimates California’s cash shortage will zoom up to more than 20-billion dollars within two years and there likely will be more financial challenges beyond 2011...
Taylor: “It’s a very large problem. And, frankly we think the legislature, it’s going to take them...kind of a multi-year process to continue to dig themselves out of this hole...”
Taylor says he’s adjusted his forecast to reflect the money that will be lost when employee furloughs end next June. 

He also didn’t factor in the increases in costs for state employee raises or funding hikes required by the federal government for state social service programs. 

Taylor is recommending lawmakers get to work on the deficit as soon as possible. 

He says if they wait until the summer the state will likely lose more money.