May 15, 2009
In February, the Governor signed a budget for 2009-10. That budget included spending cuts and revenue increases totaling $41.6 billion and eliminated the largest budget gap in the state’s history. As the global recession has deepened, the budget has again fallen out of balance. Specifically, the May Revision projects spending this year and next will exceed available funds by $15 billion in the absence of any corrective action. Moreover, the budget assumes the passage of propositions 1A, 1B, 1C, 1D and 1E on the May 19 ballot. Should these measures all fail, the budget will be an additional $5.8 billion out of balance in 2009-10. Out-year deficits would also be higher given a revenue loss of $16.2 billion.
More information: http://www.dof.ca.gov/budget/historical/2009-10/may_revision/documents/May_Revision_2009-10_General_Fund_Proposals.pdf
