http://www.lao.ca.gov/2006/budget_ov/2006-07_budget_ov.htm
January 12, 2006
2006-07 Overview of the Governor’s Budget
The 2006-07 Governor’s Budget now projects that the state will be able to fund much more than a current-law budget and still maintain fiscal balance in 2006-07. The plan, however, moves the state in the wrong direction in terms of reaching its longer-term goal of getting its fiscal house in order. Given the state’s current structural budget shortfall, we believe that the 2006-07 budget should focus more on paying down existing debt before making expansive new commitments.
In our November forecast, we indicated that a much-improved revenue picture would enable California to fund current-law budget requirements in 2006-07, but that the state still faced a longer-term structural gap between revenues and expenditures.
As a result of further improvements in the revenue outlook, the 2006-07 Governor’s Budget now projects that the state will be able to fund much more than a current-law budget and still maintain fiscal balance in the budget year. Specifically, the proposal includes over $4 billion in higher spending, including over $2 billion for new or expanded programs and $920 million for the prepayment of a loan due to transportation in 2007-08. The budget package also contains a major long-term infrastructure proposal covering transportation, flood protection and water supply, education, and corrections.
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Acknowledgments
This report was prepared by Brad Williams, with assistance from many others in the office. The Legislative Analyst's Office (LAO) is a nonpartisan office which provides fiscal and policy information and advice to the Legislature.
"leading to higher deficits in future years"
As porposed now, it put us into a 6 billion dollar deficit every year as far out as you can see now.