Budget Picture Looks Grim in California as Revenue Misses Mark
The state budget deficit in California could hit $7 billion in the current fiscal year, according to state finance officials, in part because of recent court decisions blocking state funding cuts, the New York Times reports.
For example, a judge recently blocked the state's plans to cut $80 million from its budget for In-Home Supportive Services, and Insurance Commissioner Steve Poizner (R) has filed a suit to block the sale of part of the State Compensation Insurance Fund, California's quasi-public workers' compensation insurer of last resort (Steinhauer, New York Times, 11/1).Â
The sale of State Fund is projected to generate $1 billion (California Healthline, 8/20).
In September, a federal judge blocked $117 million in cuts to the state's adult day health care services program (California Healthline, 9/14).
Moreover, California Controller John Chiang (D) said that state tax revenue was $1 billion below projections in the first quarter of the fiscal year.
Such figures have prompted some analysts to project that California's budget deficit will range from $10 billion to $20 billion inÂ FY 2010-2011 (New York Times, 11/1).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.