Wednesday, November 18, 2009

Worst-case for California's budget deficit next year? $25 billion

Yes, this is new. The earlier fix, didn't. From the San Jose Mercury-News:

With high unemployment continuing to eat at California's tax revenues, and risky budget gimmicks failing to materialize, the state's deficit next year could hit a staggering $25 billion.

If worst-case scenarios hold true, several insiders who track the state's financial picture tell the Mercury News, the deficit through June 2011 would be billions higher than previous estimates.

Gov. Arnold Schwarzenegger's best-case estimate earlier this week was half that sum, at $12.4 billion. Assembly Republican leader Sam Blakeslee of San Luis Obispo floated a number as high as $20 billion during water negotiations.

"It's not outrageous," one budget expert said of the $25 billion figure, stressing nonetheless that it would mark the uppermost boundary of any estimates....MORE