California Deficit Swells to $16 Billion, Governor Brown Says
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California Governor Jerry Brown said his state’s budget deficit grew to $16 billion amid a tepid economic recovery that sapped tax collections even as actions by the federal government and courts blocked cost cutting measures.
The shortfall has widened from the $9.2 billion Brown estimated in January, after April income-tax revenue missed budget forecasts by $2 billion. He’s set to unveil a revised spending plan tomorrow and said he will need to make cuts even deeper than he has already proposed.