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article imageCalifornia struggles with soaring budget deficit

By Leo Reyes     May 13, 2012 in Politics
California Governor Jerry Brown says California's budget deficit has soared to $16 billion or about $7 billion more than his previously announced estimate of $9.2 billion in January.
The huge disparity stemmed from revenue shortfall of at least $3 billion in the current fiscal year amid expectations of increased revenues brought about by a rebounding economy.
Brown, who is expected to make full disclosure of his budget proposal in Sacramento on Monday said spending cuts mostly on social services will have to be effected.
"This means we will have to go much further, and make cuts far greater, than I asked for at the beginning of the year," Brown said in a statement on YouTube
Brown is targeting further cuts on state workers cost which he tried to avoid earlier in his preliminary budget proposal but now he is bent on asking them to shoulder part of the cuts.
The lingering budget deficit has taken its toll on former California Governor Arnold Schwarzenegger whose approval rating during his term plummeted on budget issues as Californians struggle with floundering economy.
The State of California has struggled under the leadership of Governor Schwarzenegger with budget deficit soaring close to $25 billion which is much higher compared to the deficit under the current administration.
In his statement Brown said his administration has to contend with actions made by the federal government that blocked the state on further cuts but he assures that sales taxes would still be lower than in previous year.
"The federal government and the courts have blocked us from making billions of necessary budget reductions," he said.
In his video statement, Brown appealed to the people to join him in bringing the state back on tract by supporting his plan.
More about California, Budget deficit, Spending cuts, governor jerry brown
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