By Tim Redmond
Nice piece on Calitics about how the California budget crisis is by no means over. David Dayen explains how the state balanced its budget — so to speak — based on projections for tax revenue that were higher that what’s actually coming in. It looks as if the February numbers will be off by $900 million, and if the economy continues to get worse, we could be looking at ANOTHER $10 billion deficit by summer.
The same holds true for San Francisco. The mayor insists there’s no crisis, but even the numbers he used to make his mid-year cuts aren’t going to hold up. The way things are going now, the half-billion-dollar shortfall will be even bigger by the time the supervisors have to make next year’s budget balance.
It’s hard to imagine what this is going to mean. I was cautious about the Rainy Day Fund, but I think we’re going to need that money. And we’re going to need major, major new revenue sources. And we’re still going to face horrible cuts.
Mayor Newsom isn’t dealing with reality here. He needs to be preparing the city for what’s to come, and he needs to start now.