Gov. Schwarzenegger and Liberals in CA State Capitol Lied: Budget out of Balance by $8.6 Billion

CA State Admits Deficit Could Hit $8.6 Billion
12 October 2007

On the day the California budget was signed, Governor Arnold Schwarzenegger's Budget Director said this was a balanced budget—that was a mere eight weeks ago.

The leftists who run CA's State Legislature said the same thing. They even had a charade show with the Governor proclaiming that the "system in CA works".....

The same people now declare the deficit is $6.1 billion and could reach $8.6.

How did a balanced budget hit a deficit of over $6 billion in less than two months?

How can we trust the current prediction? Without hesitation, the budget deficit will hit $10 billion and maybe even higher at the end of the fiscal year.

What is your prediction?

Oh, by the way, they have already said next years deficit STARTS at $5 billion....Any bids as to high CA's budget deficit will reach? BTW - If we merely cut illegal aliens off of GOVT programs in CA, we'd save $10 Billion per year.....enough to have our socialist cake and eat it too!

Don't worry for those you in other states, you'll soon find yourselves in similar positions with increasing costs, non-popularity of tax increases and an unwillingness to say "NO" to the people whose special interests are slurping up tax dollars.


State budget forecast worsens By Judy Lin -

Sacramento Bee Capitol Bureau - October 9, 2007

Just weeks after lawmakers enacted a state budget amid partisan turmoil, finance officials say revenues are slipping below projections, making it likely that next year's problem will be worse than expected.

California could face a $8.6 billion operating deficit if the state's economy and soft housing market continue through the rest of the fiscal year. Such a potential shortfall would widen the current $6.1 billion gap by another 40 percent.

"It's fair to say the revenue situation is not going to be as good as we had hoped," Finance Director Mike Genest said in an interview with The Bee last week. "It's likely the $6.1 billion (deficit) will be higher."

What's more, several of the assumptions that went into the current spending plan - such as the $1 billion sale of EdFund - are deemed to be shaky. EdFund is the state's student loan guarantor.

State departments have been told to propose no new spending next year unless they cut a like amount from an existing program.