3 months ago
SACRAMENTO, CA- The state's chief budget analyst announced that California will face up to a $21 billion dollar shortfall over the next year and a half. The deficit could reach $23 billion in 2012. That's if there's no new spending cuts or added tax revenues. "It's unbelievable to me.The facts change day to day almost," said Debbie Wilcox, a state worker. Just last week, the governor estimated next year's budget deficit at 15 billion dollars. The updated forecast assumes no cost of living adjustments for state workers and programs.The legislature suspended them this year. The forecast also does not take into consideration that state worker furloughs end next June. "The governor has made no decisions to extend that or whether its going to sunset." said H.D. Palmer, Deputy Director of Finance. Wilcox, a single mother of two children, is living paycheck to paycheck. She says furloughs have hit her hard. "It concerns me enormously right now. I've had to take a 15 percent salary cut," said Wilcox. The governor is adamant about not raising taxes despite the major shortfall. That comes on the heels of a 60 billion dollars in cuts- including millions of dollars in cuts to education, health care, and social services. Even so, the Deputy Director of Finance says there are many more difficult decisions ahead. Assembly Speaker Karen Bass responded to the latest announcement saying, "We will look forward to receiving the governor's new budget proposal in January and will immediately begin work on crafting budget solutions that will once again require both difficult spending reductions and additional revenues." According to Legislative Analyst Mac Taylor, this year's budget deficit is due to the less than realized savings from cuts to Medi-Cal, the state prison system, and transit funds to local governments. In some cases, lawsuits have blocked the spending cuts. In other cases, state agencies failed to cut spending as directed. News10/KXTV By Suzanne Phan, sphan@news10.net
KXTV/News10
