California needs $20.7 billion to balance the next budget, according to a forecast issued by the nonpartisan Legislative Analyst’s Office.
Kevin Yamamura reported said, “state leaders won’t be able to reap savings from some of the state’s largest spending categories.”
For instance, California lawmakers cannot touch K-12 school funding because “the state is spending close to a minimum amount required by the federal government. The state can’t cut Medi-Cal until January 2011 for the same reason. Those programs make up more than half the state’s $84.6 billion general fund budget. ”
Most likely leaders will pursue cuts in prisons, state parks and social service programs.
Click here to read the LAO report.
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