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Legislative Analyst Critical Of Schwarzenegger Budget

Sacramento, CA — The state´s nonpartisan legislative analyst says Governor Schwarzenegger´s $123 billion dollar budget proposal spends too much of a one-time windfall on new or expanded programs and will lead to higher deficits in future years.

Legislative Analyst Elizabeth Hill´s review urges lawmakers to consider putting more of an estimated $4 billion in unanticipated income into reserve accounts or use it to pay off existing debts.

Schwarzenegger released his budget plan Tuesday, calling it a fiscally responsible proposal that provided needed spending increases for education and public health programs. He noted that it includes no tax increase and no new borrowing.

The analyst´s report says that if the 2006-2007 budget is adopted as the governor proposed, the state would face a $5 billion shortfall in the following fiscal year.

Hill also reviewed the governor´s $222.6 billion dollar public works construction program.

She says the governor is making broad assumptions about the sources of money that would be needed to pay for it.