California’s budget woes, which project the current budget is running more than $11 billion in the red, could be seen as the good old day if nothing changes, warns the nonpartisan Legislative Analyst’s Office on Tuesday.
California’s struggling economy signals a major reduction in expected revenues and when combined with rising state expenses, the state will need $27.8 billion in budget solutions over the next 20 months, says the LAO.
“The state’s revenue collapse is so dramatic and the underlying economic factors are
so weak that we forecast huge budget shortfalls through 2013‑14 absent corrective action,” it says. “From 2010‑11 through 2013‑14, we project annual shortfalls that are consistently in the range of $22 billion.”
The LAO says it is imperative that the Legislature attack the budget problem ggressively, making permanent improvements to the state’s fiscal outlook.
“If the state has any hope of developing a fiscally responsible 2009‑10 budget, it must begin acting now,” it says.
Tuesday, November 11, 2008
Posted by Bakersfield Bubble at 11:31 AM