(California) Deep cuts likely in updated state budget [View All]

Source: San Francisco Chronicle

(05-10) 04:00 PDT Sacramento --

The state budget crisis has been quiet for the past few months but will return to center stage this week as Gov. Arnold Schwarzenegger prepares to belt out some bad news.

The governor is scheduled to release an updated budget plan Friday that will probably include even deeper cuts than those he proposed in January, when he called for reductions in health and human services, prisons, education and state worker pay, among other areas.

Unexpected gains in state revenues that leaders hoped would significantly cut the deficit evaporated in the last few weeks. State Controller John Chiang reported Friday that revenues coming into state coffers from personal and corporate taxes fell $3.6 billion short of what was projected in April, the month when the bulk of revenues are collected.

That means the state's budget deficit, which started the year at $20 billion and dipped to about $18.6 billion after some midyear actions by the Legislature, could exceed the original estimate.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/05/10/MNP71DBAHA.DTL&feed=rss.bayarea

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Yikes. The dysfunctional (or should i say replace the "nc" with "ck") state of California is gonna screw over all the non-wealthy people with its inability to pass budgets on time and manage money.