Friday, August 24, 2007
While California now has a state budget, legislators are already worried about next year's spending plan. A San Diego legislator says a decline in state revenues sets the stage for another tough budget battle. KPBS reporter Ed Joyce has details.
San Diego Senator Denise Moreno Ducheny says the new budget keeps the state moving by funding education and other programs.
Ducheny : On the whole, I think it's an OK budget, it's not a budget that anybody's real excited about, but it's critical for keeping services going.
Economists say a continuing slump in new-home sales and construction and other economic problems could cut into state tax revenues.
Ducheny says the new budget was signed with an eye toward next year.
Ducheny : You know I've said from the beginning it's kind of a workload budget because we have been very conscious of the fact that the economy is not what we'd like it to be. You know, we're very concerned about revenues next year.
There's a $5 billion deficit looming for the state next summer. Falling revenue means legislators will have a hard time closing the gap without considering painful cuts to schools, transportation projects and social services.
Ed Joyce, KPBS News.