economy news

California budget shortfall seen nearing $42 billion


SAN FRANCISCO (Reuters) - California faces a $41.8 billion shortfall for its combined current and next fiscal years, up from a prior $28 billion estimate as its economy weakens and revenues decline, the director of the state's Department of Finance, said on Thursday.

Michael Genest, also Gov. Arnold Schwarzenegger's state budget architect, told reporters at a briefing in the state capital of Sacramento the revised shortfall estimate includes provisions for a $2 billion reserve and affirmed the governor's outlook on the state's dwindling cash.

Schwarzenegger said on Wednesday that California's budget deficit for its current fiscal year had widened to $14.8 billion from a previous estimate of $11.2 billion, and the government of the most populous U.S. state may be out of cash by the end of February.

-> How is that the "budget gap" jumped from 11 billion to over 40 billion in a matter of days

??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

I'm having a hard time wrapping my mind around notions that this money "simply disappeared" and is that even what they're claiming? "They" meaning big brother...