Legislative Analyst Elizabeth Hill said this morning that the state faces a budget deficit of $6.7 billion next year, and almost $10 billion in 2006-07.
Both are increases in her deficit projections from just a few months ago.
Hill, who is the Legislature's non-partisan budget expert, told Capitol reporters this morning that while revenues are higher than expected, so too are expenditures.
And the numbers don't get any better when Hill's team uses current budget law to project what happens for the rest of this decade. Those deficits, she predicts, would run about $9 billion a year, with a slightly smaller shortfall of about $6 billion by 2010.
The governor's advisers will surely say what they often do: that the projections assume no other changes are made-- an assumption they believe is unlikely with Arnold Schwarzenegger in the corner office.