7/18/09

California

Even if California Governor Arnold Schwarzenegger and top lawmakers


quickly plug a $26.3 billion deficit to balance the state's budget


the state's weak revenues signal that a new shortfall will emerge


 


…a balanced budget is seen as fleeting because California's economy


which is reeling from high unemployment and the recession


will remain in the dumps for some time


 


Closing the current shortfall


does not account for further deterioration in the economy and revenue


that many economists expect


 


California's revenues from personal income tax collections


its main revenue source


are posting their worst decline since the Great Depression


 


California's budget gap won't close for long


Jim Christie


Reuters, July 18, 2009

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