On Wednesday, the Legislative Analyst’s Office released its fiscal analysis of the 2011-12 budget, and the result was not pretty. It projects a deficit in the current (2010-11) year of over $6 billion, and a deficit of over $19 billion for the budget year of 2011-12. It’s worth reading.
On Thursday, Governor Schwarzenegger called for a special legislative session to address the current year budget crisis, to start December 6th, with the newly elected Legislature. He has been clear he will propose more cuts, and not revenues, in his final month as Governor.
On Friday, we just have to hope no other shoe drops. Combined with the federal developments that suggest additional cuts coming down the pike, that’s enough bad news we can take this week.