Analyst: Failed Prior Projections Bring Calif. Budget Gap to $21B
A new report suggests that California faces a $21 billion budget gap partly because of failed spending projections for state health care services and other programs, the Sacramento Bee reports.
Legislative Analyst Mac Taylor is scheduled to release the report today.
In July, state lawmakers passed a budget revision package that relied on several spending assumptions (Smith, Sacramento Bee, 11/18). The new report suggests that the previous budget deal missed the mark because it:
- Assumed the federal government would contribute $1 billion to Medi-Cal, California's Medicaid program;
- Estimated that the state would bring in $1 billion from the sale of the State Compensation Insurance Fund in the current fiscal year;
- Underestimated prison spending; and
- Underpaid the public school system.
More Spending Cuts?
Gov. Arnold Schwarzenegger (R) is scheduled to present his next proposed budget in January 2010 as he begins his final year in office.
His new budget will need to account for this year's estimated $6.3 billion deficit as well as the $14.4 billion gap projected for next fiscal year (Goldmacher, Los Angeles Times, 11/18).
Previously, the governor has said he would push for across-the-board cuts to help bring the budget back into balance (Sacramento Bee, 11/18).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.