The LAO announced that California is facing a $68 BILLION deficit. An overestimation of tax receipts appears to be the largest contributor to the problem. The Governor will now begin preparing his January Budget proposal. Initial responses indicate that there may be enough reserves, and one-time spending proposals that could be eliminated, to avoid devastating cuts to education.
There are several articles about the state budget problems. Use the following link to read one of them:
The LAO Report can be accessed through the following link: LAO State Budget Outlook