The budget deal Gov. Arnold Schwarzenegger plans to sign Tuesday relies on roughly $8 billion in accounting maneuvers and questionable new revenue that experts say will result in what the governor vowed never to do: kick the problem down the road. "Next year’s budget will start with a very large shortfall even if there’s a good recovery," said Steve Levy, a senior economist at the Center for the Continuing Study of the California Economy in Palo Alto. And, Levy cautioned, the state’s finances will face additional challenges when federal economic stimulus funds run out.

Read full article [here].
by Matthew Yi, The San Francisco Chronicle.

Posted: July 26th, 2009, by: admin. Categories: . Awaiting Comments.