Posted on 12/11/2007 7:00:42 PM PST by NormsRevenge
SACRAMENTO -- The state Department of Finance reportedly has increased the estimate of the state budget shortfall to $14 billion over the next 18 months, up from a $10 billion estimate by the Legislative Analyst last month.
Gov. Arnold Schwarzenegger is briefing legislative leaders on the new calculation made by Finance as the administration works on a proposed budget for the new fiscal year beginning on July 1.
"I am not confirming or denying anything," said H.D. Palmer, the Finance spokesman. "We are not going to comment until the governor has had the opportunity to brief legislative leaders and hear from them."
The budget that Schwarzenegger signed in August, two months late, was expected to have a $4 billion reserve this fiscal year and a shortfall of $6 billion next fiscal year.
Non-partisan Legislative Analyst Liz Hill estimated last month that the current budget will have a $2 billion deficit, mainly because of less tax revenue from a weakening economy, and an $8 billion shortfall next year.
The general fund in next year's budget is supposed to spend $111 billion under current law. A $14 billion shortfall is a budget gap of 12.6 percent. Lawmakers would have to consider deep spending cuts, tax increases or extraordinary measures like leasing the state Lottery.
Why am I still here?
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Too many threads on the same thing. More than one is overkill.
Actually there aren't enough. These threads are excellent examples of what this forum is all about. They serve as a constant reminder of an inalienable truth:
Political conservatism, not the Republican Party, is the answer to what currently ails us all.
The more the merrier. Bring them on by the dozen.
Scattered, diluted, disjointed, powerless.
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