On Monday, Gov. Arnold Schwarzenegger (R) predicted that California's budget deficit could grow by $5 billion to $7 billion this fiscal year, the Sacramento Bee reports.
The prediction comes on top of a $7.4 billion budget gap already projected for 2010-2011. If the figures are accurate, California lawmakers could face a $12.4 billion to $14.4 billion deficit when Schwarzenegger releases his budget proposal in January.
The widening budget gap could stem partially from recent court decisions blocking state cuts to in-home care and other services.
Schwarzenegger said he favors deep spending cuts as a strategy to address the deficit. He also expressed support for pension changes that would reduce payouts for future public employees.
The governor did not discuss possible tax increases (Yamamura/Smith, Sacramento Bee, 11/10).