Below is a portion of one of the leading stories in today's L.A. Times.
Let me summarize: Turn out the lights, the party's over ...
By Shane Goldmacher, Los Angeles Times
Reporting from Sacramento — As Jerry Brown prepares to take over as governor, California faces a $25.4-billion deficit — far larger than state officials were projecting only days ago — the state's chief budget analyst said Wednesday.
The figure, projected over the next year and a half, results from billions of dollars in phantom savings approved by Gov. Arnold Schwarzenegger and legislators last month, more budget restrictions passed by voters last week and predictions of a "painfully slow economic recovery," according to the report from the nonpartisan Legislative Analyst's Office.
In addition, more than $8 billion in temporary sales, car and income taxes are set to expire in the coming year, and the federal stimulus program that has helped prop up schools, healthcare for the poor and other state programs also will soon disappear.
The report shows $20-billion annual shortfalls in future years as well.
"There is no good news," said Legislative Analyst Mac Taylor.
Simply keeping K-12 public schools funded at their current level would expand the deficit, Taylor said. That is because billions of dollars in school cutbacks are already factored in.
The predicted $25.4-billion deficit is the equivalent of about 29% of this year's general fund budget. Erasing the gap will require a combination of severe cuts and more in tax collections over several years, the report said.
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