November 15, 2011
California may be facing a deficit of about $5 billion to $8 billion according to legislative budget experts. The current projected deficit by the governor’s office is $3.1 billion. The current budget was balanced by assuming additional revenue of $4 billion in 2011-12. If forecasted state revenue falls at least $1 billion short by next month then so-called automatic "trigger" cuts will occur. Budget experts hope that the state shortfall may be a timing issue, with the bulk of the anticipated revenue arriving in the last six months of the budget year. The forecast for the second half of the fiscal year will be watched closely in Sacramento to see if the state’s finances have stabilized or if California will have significant budget cuts.