State Budget Relies On Creative Accounting

SACRAMENTO, Calif. (AP) — Lawmakers are getting their first look at a proposed budget agreement that attempts to close California’s $19 billion deficit with some spending cuts and a large dose of creative accounting.

The deal reached last week between Gov. Arnold Schwarzenegger and the leaders of the Assembly and Senate does not contain new taxes or fees.

Instead, it relies on a series of assumptions and accounting shifts. For example, it would delay nearly $2 billion in payments to K-12 schools and community colleges until the next fiscal year.

It also counts on the state receiving $5.3 billion from the federal government and an economic recovery that would provide $1.4 billion in additional tax revenue.

The overdue annual spending plan starts to go before committees on Wednesday.

(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments

One Comment

Leave a Reply

Please log in using one of these methods to post your comment:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Los Angeles

KNX 1070 Newsradio
Play.It

Listen Live