Governator: Budget Shortfall to Reach $42 Billion by 2010

A spokesman for Gov. Arnold Schwarzenegger says California's budget deficit will hit $41.8 billion through the next fiscal year.'

Spokesman Matt David says plummeting revenues have made the shortfall worse than previous projections. He says it's now forecast to hit $41.8 billion through fiscal 2009-10, which ends in June 2010.

Schwarzenegger said Wednesday that the shortfall for the current fiscal year has grown to nearly $15 billion.

The governor was meeting with legislative leaders Thursday.

He's trying to persuade them to agree to a combination of cuts and revenues to address the dramatic shortfall.

He has declared a fiscal emergency for the state but lawmakers have so far failed to take action.

Copyright AP - Associated Press
Contact Us