Governor Schwarzenegger says the state's budget deficit is climbing. He said the state's revenues keep falling short and current budget formulas require spending increases.
Schwarzenegger: And so this fiscal year our revenues are going to be short seven billon dollars. This is this fiscal year 2007-2008. Next fiscal year probably more than ten billion dollars short.
The budget deficit has been a moving target all year. In January, the state was facing a $14-billion plus shortfall. But action by the legislature cut that roughly in half. However, revenues through the end of March are about a billion less than expected.
The Governor will release his revised budget proposal in mid-May. He said again Thursday that he opposes tax increases. He urged lawmakers to begin negotiating on the budget right away. Democrats have said tax hikes are necessary. They say the Governor's proposed across-the-board cuts don't reflect priorities.
