California's non-partisan legislative analyst says Governor Arnold Schwarzenegger's new budget plan is too optimistic. The administration had estimated a roughly two billion dollar reserve - or rainy day fund. But analyst Elizabeth Hill says it's realistically only about $500 million.
She says the Governor's budget still relies too heavily on Indian casino profits, and she questions whether his plan to shift money from public transportation is legal. Hill says she's also concerned the budget sets the state up to go deeper into the red.
Hill : Under our estimates of the governor's policies, the state would be spending over three billion dollars more than we would take in the budget year 2007-2008, and this would grow to more than $5.3 billion in 2008-2009.
Hill says the Governor's plan to sell the organization that guarantees student loans “merits serious consideration.” She also says for the first time in awhile, she agrees for the most part with the administration's revenue projections.
