Less than four years after declaring California’s budget was balanced for the foreseeable future, Gov. Jerry Brown on Tuesday said the state is now projected to run a $1.6-billion deficit by next summer.
“The trajectory of revenue growth is declining,” Brown told reporters at the state Capitol on Tuesday as he unveiled the state’s budget.
The $179.5-billion plan seeks to resolve the budget shortfall by slower-than-expected growth in public school funding by rolling back a series of one-time expenses discussed during last year’s budget negotiations.
Brown’s budget does not take into account a repeal of the Affordable Care Act, which would be unlikely to happen during the fiscal year at hand. But the governor made clear such a rollback could have a significant impact on California, where federal subsidies to Medi-Cal now top $16 billion.
Click here to read the full story on LATimes.com.
