Gino DiCaro

State budget woes continue

By Gino DiCaro, VP, Communications

Capitol Update, Oct. 23, 2009 Share this on FacebookTweet thisEmail this to a friend

In yet another sign that the state’s ongoing budget woes continue to worsen rather than improve, a federal judge this week blocked cuts approved in the July budget fix to in-home care services. This comes on the heels of several federal and state judgments that have struck down (or are poised to) a host of measures relied upon to close the state’s $60 billion-plus deficit in the February and July budget sessions.  Just a few of these measures include state worker furloughs, prison population reforms, water, redevelopment agencies and the state workers compensation fund.

Even before the ink had dried on the budget negotiated in July to close the more than $25 billion deficit, the state was forced to face the reality that it would enter the 2010-11 budget year with a $7.4 billion deficit.  New estimates now indicate that the state will face double digit deficits given a struggling economy that continues, court-mandated restoration of some of the cuts, and the Legislative Analyst’s Office report last week indicating that the state has collected over $1.1 billion less in tax revenue through September than expected.

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