Budget Deficit Increasing, But Just Slightly

Comments Off on Budget Deficit Increasing, But Just Slightly

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.

There are many more interesting elements to Hill's report... you can read it here, and get a broader sense of the challenges ahead when we tackle the issue tomorrow morning on The California Report.

RSS Subscribe

About John Myers

John Myers is senior editor of KQED's new multimedia California Politics & Government Desk.  He has covered California politics for most of the past two decades -- serving previously as Sacramento bureau chief for KQED News and, most recently, as political editor for KXTV News10 (ABC) in Sacramento. He moderated the only gubernatorial debate of 2014, and was named one of the nation's top statehouse reporters by The Washington Post. Follow him on Twitter @johnmyers.

Comments are closed.