LAO Estimates Budget Shortfall

The state’s budget watchdog agency has issued its forecast of the state’s General Fund shortfall for the next budget year, estimating the state faces a shortfall of nearly $21 billion. The Legislative Analyst’s Office says the budget gap consists of a $6.3 billion projected deficit for the rest of 2009–10 and a $14.4 billion gap between projected revenues and spending in 2010–11. The 2010-11 estimated deficit is much higher than previous predictions of around $7 billion.