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.