Updated Numbers from the State

From today's Capitol Notes Blog:
Late word this evening that will get everyone's attention: Governor Arnold Schwarzenegger has informed legislative leaders that if three of the six budget-related ballot measures fail next Tuesday, the state faces a $21.3 billion deficit between now and next July.
In a letter to the four legislators this afternoon, Schwarzenegger actually offered two new assessments from his budget team of what lies in store for California: a $15.4 billion shortfall if Propositions 1C, 1D, and 1E pass, and the aforementioned $21.3 billion if they fail.

Thus, the best case scenario now has a budget gap in excess of $15 billion! This includes the $8 billion deficit now predicted for next year, along with a $7.4 billion deficit for the balance of this year--up $5 billion from the $2 billion we discussed in Saturday's blog post. To read more about this painful news, click here.