According to today’s Mercury News, California’s budget deficit will far surpass preliminary estimates. The Legislative Analyst’s Office is predicting a deficit of $6.3B in FY2009-10, followed by deficits of about $20B for the next five years. Through FY2014-15, the predicted deficits total $109.7B. (Note: that’s almost as much money as six major U.S. banks put aside for bonuses in the first nine months of 2009.)
At least the state is investing in education! Oh, wait…
UC regents recommend 32 percent fee hike
This cannot go on much longer.
The worst part is that California is not alone. There are at least a dozen states in similar financial straits.
We are going to need a massive reflationary jobs program and state bailout. It’s time to face the music. We are not rich any longer; let’s start the long climb out.