California’s budget deficit grows to $16
billion
SACRAMENTO
(AP) – California’s fiscal watchdog says the state’s budget shortfall has grown
to $16 billion because of falling tax revenue from the depressed housing
market.
Governor
Arnold Schwarzenegger last month pegged the shortfall at $14.5 billion through
June 2009.
The
larger number released Wednesday is based on new economic data through the
beginning of February.
The
deficit projection does not factor in $3.3 billion in new borrowing Schwarzenegger
has authorized or $1 billion in emergency cuts the Legislature passed last
month.
Legislative
Analyst Elizabeth Hill said the deficit could swell even more in the coming
months.