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.
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