California Faces $28 Billion Deficit
Sacramento, Ca — California´s budget deficit is projected to grow to $28 billion through June of 2010, unless action is taken shortly by lawmakers in Sacramento.
This is according to a new report issued by the Legislative Analyst´s Office.
The Associated Press reports that the Schwarzenegger administration had projected a 24.5 billion hole, but tax revenue is now expected to be lower.
“With the expected slow recovery of the state´s economy, it is imperative that the Legislature attack the grim budget problem aggressively, making permanent improvements to the state´s fiscal outlook,” writes Legislative Analyst Mac Taylor.
Governor Schwarzenegger has proposed $4.4 billion in cuts and a 1.5 percent increase in the state´s sales tax.
Written by BJ Hansen