California's deficit expected to grow despite revenue from better economy [View All]

[Judi Lynn]

California's deficit expected to grow despite revenue from better economy

TOM CHORNEAU, Associated Press Writer Friday, November 14, 2003


(11-14) 19:45 PST SACRAMENTO, Calif. (AP) --

California's budget deficit will likely top $10 billion next year, up $2 billion from previous projections, despite revenue from an improving economy, an advisory agency said Friday.

The shortfall might grow an additional $4 billion if Gov.-elect Arnold Schwarzenegger fulfills a campaign pledge to roll back a tripling of the car tax.

According to the Legislative Analyst's Office, which advises state lawmakers on fiscal issues, tax receipts are projected to increase by as much as $2.2 billion for the next seven months, but will be more than offset by spending on public health programs, prison inmates and other services.

But John Cogan, a key adviser to Schwarzenegger, said Friday the state's budget crisis can be solved by borrowing as much as $20 billion and imposing spending limits on all departments with the possible exception of education. (snip/...)

http://www.sfgate.com/cgi-bin/article.cgi?f=/news/archive/2003/11/14/national1902EST0756.DTL