Free Republic

Legislative analyst says it will create chronic shortfalls - Sacramento -- Gov. Arnold Schwarzenegger's budget would take the state in the wrong direction because it spends too much of a revenue windfall on expanding programs rather than trying to wipe clean the deficit that California has racked up over the past several years, the state's nonpartisan budget analyst said Thursday. Legislative Analyst Elizabeth Hill warned that much of the revenue surplus that Schwarzenegger plans to spend this election year is from volatile business tax and capital gains tax revenues, which could quickly disappear if the economy softens. Schwarzenegger's plan for...