CALIFORNIA BUSINESS MINUTE
State Budget
12-09-08
Hi, I am Tim Johnson and welcome to the California Business Minute.
If misery loves company, California has plenty of it in terms of budget deficits. Slammed by
declining tax revenues because of the recession, states face a combined budget gap of $97
billion over the next 18 to 24 months, according to report by the National Conference of State
Legislatures.
California's $28 billion shortfall is the largest by far -- twice the size of New York state's
$14 billion deficit -- and accounts for nearly one-third of the total state deficits. California
is one of 15 states facing a deficit amounting to 10 percent or more of its general fund in
the 2009-10 fiscal year, the report said.
Arizona's is the largest at 24.2 percent, followed by New York (20 percent), California (18 percent),
Wisconsin (17.2 percent), Minnesota (14.7 percent) and Kansas (14.5 percent).
"These budget gaps are approaching those seen in the last recession, which were the worst
since World War II, and show every sign of growing larger," said William Pound, executive
director of the conference. Twenty states have proposed or enacted spending cuts totaling
nearly $4 billion, the report said. No figure was listed for California's proposed spending cuts.
It also found only six states anticipating a stable revenue outlook for the remainder of the current
fiscal year.
I am Tim Johnson and this has been the California Business Minute.
|
