Posted on 04/29/2008 3:09:31 PM PDT by SmithL
Gov. Arnold Schwarzenegger said Monday that California faces a budget gap that could approach $20 billion through June 2009, a dizzying projection that adds further confusion to the depth of California's financial crisis.
"Right now, we have approximately, altogether, $20 billion of deficit," the Republican governor told business leaders in Orange County. "It's going to be a big challenge."
The estimated gap for the fiscal year that begins July 1 already has prompted talk in Sacramento of tax increases and spending cuts that could hit classrooms, law enforcement and health care.
The new figure essentially doubles the Republican governor's deficit projection from just days ago. California's economy has been hammered by the slumping housing market, while soaring gas prices have cut into consumer spending.
Just last week, the governor said the state would face a potential $10 billion deficit in the next fiscal year. His spokesman, Matt David, said Schwarzenegger misspoke at that time.
The governor's announcement appears to be setting the stage for more grim news when he submits revisions to his budget next month.
Schwarzenegger initially forecast a $14.5 billion deficit for the 18-month period starting in January, a figure that grew to an estimated $16 billion soon after. Lawmakers met in special session and cut that figure to about $7.4 billion for the next fiscal year by authorizing more borrowing, delaying some payments, and making cuts and other budget changes.
(Excerpt) Read more at sfgate.com ...
dont worry, it will be $30 billion by next time this subject comes up again.
The Governor and Mayor of Los Angeles fail to cut overspending....the state is circling the drain.
I’m sure they could just raise taxes on everybody connected with Hollywood.
With all their talk I would think they would be more than happy to give 80% of what they earn to “The State”.
Turn off the lights when you leave.
They COULD eliminate things like sex-change operations for prison inmates and state employees or perhaps, complete medical care or schooling for illegals.
But they are going to cut LE instead!
What?? Only $20 BILLION ?? Gee, Arnie, the stupid liberal dolt voters who approved your spending intiatives don’t understand the spin here. By the time you are done, it will be way over $50 BILLION, depending on what time frame you are talking about -—
No new taxes, right Arnie??? Your campaign slogan?? California, the once-strongest economy in America, is dying a slow liberal death from confiscatory taxation and repressive regulations.
Nice job, Arnie.
nothing that another new tax or ‘fee’ can’t fix (for the next year at least).
"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
Here’s an easy one for him.............start cutting the state legislatures salaries 10% each month until they balance the state budget without raising taxes and fees.
Maybe allow off-shore drilling too?
Dammit, cut off the aid for illegals then.
Amateurs. Congress can spend more than that on a slow afternoon. ;)
What is Tom McClintock’s deficient?
Senator McClintock said the deficit was actually $18 billion. The governor excoriated him for it. I guess “future” Congressman McClintock was correct.
Why don’t you try to raise taxes to do it? Of course people will complain so what you do is you build a constituency that will support it by putting more people on the dole or on the public payroll. Of course some people will move out of state so they won’t have to pay the taxes. So you get rid of some opposition for the program. So you replace the tax loss by raising taxes again and putting more people on the pay roll and the dole. Then if people start to move out gain you just raise taxes again and put more people on the pay roll and the dole. Makes sense to me. It sounds Like California is on the right track. We might consider giving them to Mexico.
Whoopsie.
/s/ Gray Davis
They of course cost us nothing, and lighten the joint up.
It couldn’t be that high taxes and the worst Rube Goldberg environmental regulations outside the EU are driving business away from the State, could it? All they need to do to fix things is pass stricter global warming legislation and raise taxes some more!
But Schwarzenegger’s a Republican!
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