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State Already Facing $21 Billion Deficit For Next Year

Christina Heller

Story Created: Nov 18, 2009 at 3:52 PM PDT

Story Updated: Nov 18, 2009 at 7:07 PM PDT

SACRAMENTO, Calif. (AP) - A new forecast says California is facing a $21 billion budget gap this year.

In a multiyear forecast released Wednesday, the Legislature's nonpartisan budget analyst says budget problems have reappeared just months after Gov. Arnold Schwarzenegger and lawmakers claimed to have dealt with the last crisis.

The report says many of the assumptions in their last budget failed to solve the problem, which will leave California $6.3 billion short in 2009-10.

Legislative Analyst Mac Taylor says the shortfall will be $14.4 billion for 2010-11. Taylor says state leaders will have to make more painful choices.

The report suggests California's economy is on the mend, but analysts don't expect it to recover for another year or two.

(Copyright 2009 by The Associated Press. All Rights Reserved.)
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