Support for LAist comes from
True LA stories, powered by you
Stay Connected

Share This

News

State Budget Unbalanced Again, $8 Billion Still Needed

Our reporting is free for everyone, but it’s not free to make.
LAist only exists with reader support. If you're in a position to give, your donation powers our reporters and keeps us independent.

5b2bd79b4488b3000926b427-original.jpg


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.