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Tax Income – Spending Cuts Chip Away Budget Deficit

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Sacramento, CA — California lawmakers won´t have to worry about a multi billion-dollar budget deficit next year for the first time in four years thanks to an unexpected jump in tax income and spending cuts.

But Legislative Analyst Elizabeth Hill tempered the good news with a warning in her report that the state has not solved its long-term spending problems.

Hill also warns that big deficits will return in 2007-2008 unless additional steps are taken.

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