Sunday, July 26, 2009

Calif. deficit deal likely just a temporary fix

From AP:

California's deal to close its $26 billion budget gap may end up doing what Gov. Arnold Schwarzenegger had hoped to avoid: kicking the state's problems down the road.

Despite deep cuts to education and social programs, the deal struck late Monday is filled with assumptions and accounting gimmicks. Combined with a persistent recession, it is likely to lead to yet another multibillion-dollar deficit in the next fiscal year.

"Frankly, we may not be done yet," said Senate leader Darrell Steinberg, D-Sacramento. "We pray for better economic news sooner rather than later."

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