State Budget Unbalanced Again, $8 Billion Still Needed
Will the deficit clock make a return?
The economy is worse than anyone could predict. It's so bad, the budget passed--just a few weeks ago--is already falling short $8 billion because of it. "Even in the few weeks since the budget was signed, there have been a series of negative developments," the state Legislative Analyst's Office (LAO) wrote in a review of the budget package. "Our updated revenue forecast projects that revenues will fall short of the assumptions in the budget package by $8 billion. Consequently, the Legislature and governor will need to adopt billions of dollars in additional solutions in the coming months to bring the 2009-10 budget back into balance."
This means more cuts or taxes could be coming and if cost savings and/or revenues are not made into permanent changes, the state will continually be in a growing deficit in the billions for years to come.