California Starts the Year $6 Billion in the Hole

California’s Budget Analyst announced that the state is already $6 billion in the hole, and that the state faces a $25 billion deficit for 2011. Personally, I think that’s understating the problem: I suspect the deficit will rise to $30 billion. Governor-Elect Jerry Brown has pledged no new taxes or tax hikes but the public doesn’t believe him.

Current Governor Arnold Schwarzenegger has called the current legislature into a special session to deal with the $6 billion deficit. I’m not sure what he hopes for by this, as the only solution is drastic cuts to state government. And that solution is one which the Democrats who control the legislature will not touch.

Comments are closed.