California revenues lag, underscore budget woes

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SAN FRANCISCO (Reuters) - California's revenues since the start of its fiscal year are trailing estimates by more than $1 billion, according to the state's November revenue report, which comes as Governor Arnold Schwarzenegger wrestles with crafting a balanced state spending plan.

Next month Schwarzenegger must present to lawmakers a balanced budget plan for California's next fiscal year beginning in July, while closing the deficit that has reopened in the current fiscal year's spending plan.

The combined shortfall for the two years has been pegged at about $21 billion -- the result of a state economy battered by a steep decline in its housing market, weak consumer spending, widespread layoffs and 12.5 percent unemployment.

The broad economic weakness gripping the most populous U.S. state was reflected in the state Department of Finance's November revenue report released on Tuesday.

http://www.reuters.com/article/idUSTRE5BF5HL20091216