Friday, March 13, 2009

LAO Issues Grim Report On State Finances

Here is the latest from the Legislative Analyst, who projects continued budget shortfalls even with last month's budget deal. The key message: "Our updated revenue forecast projects that revenues will fall short of the assumptions in the budget package by $8 billion. Moreover, a number of the adopted solutions—revenue increases and spending reductions—are of a short–term duration. Thus, without corrective actions, the state’s huge operating shortfalls will reappear in future years—growing from $12.6 billion in 2010–11 to $26 billion in 2013–14." Here is a summary article from the Sacramento Bee.

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