Published: May 16 2008, 12:28 AM · Updated: May 16 2008, 1:19 AM
“Our state does not have a revenue problem, we have a spending problem.” With that, Gov. Schwarzenegger announced his revised state budget for the coming 2009 fiscal year. His statement was correct in one respect: State revenue has increased, on average, five percent a year over the last decade. He should have added that this year we do have a revenue problem. With the softening economy, revenues are down. This aggravates the spending problem, The result: an estimated deficit of $17 billion.
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