Gov. Jerry Brown Predicts $1.6B Deficit as He Unveils New State Budget

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California Governor Jerry Brown speaks to reporters as he announces his proposed budget at the California State Capitol on January 10, 2011. (Credit: Getty Images)

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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.

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