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Saturday, July 25, 2009

California Budget: Good until the next drop in Revenue

by Calculated Risk on 7/25/2009 08:25:00 PM

From the San Diego Union: Calif. officials concerned about new budget woes

"It's entirely likely we will ultimately see further declines in revenue, which will almost certainly require further budget action," said Assembly Minority Leader Sam Blakeslee, a Republican from San Luis Obispo.
Officials will also be watching monthly revenue reports from the Department of Finance and the controller's office to look for signs of new trouble in the months ahead.
Of course, one of the key elements of the new California budget is to have the state use money that is normally allocated to cities. So I expect layoffs at the local level in addition to the possibility of further state revenue declines.