California faces more budget cuts in 2010
January 3, 2010
California heads in to 2010 facing a nearly $21 billion shortfall during the next 18 months, despite a wave of deep spending cuts. [Associated Press]
Pick an issue. Any issue. Class enrollment will swell. Public colleges will raises fees and reduce classes. State workers likely face more furloughs — or layoffs. And the poor may go without welfare support. One veteran Sacramento lawmaker describes 2010 as “an absolutely hard and difficult year.”
There will be one last budget battle under Arnold Schwarzenegger. California’s general fund is depleted, and has fallen from a high of $103 billion in 2007-08 to the current level of $84.6 billion. The Democrats want tax increases. Republicans will push back with spending cuts. The most likely outcome: Political stalemate. The governor is expected to unveil his latest spending plan next week in the annual State of the State address.