Not to be outdone, there is California with a $20 Billion deficit. One problem that is inherent in the system is that we have been living in a dream world of sustained growth and thus more revenue from taxes. But all the money is in China (more on that later). With China holding $3 Trillion, because of the trade deficit, that is money that is not taxable.
"Our forecast of California’s General Fund revenues and expenditures shows that the state must address a General Fund budget problem of $20.7 billion between now and the time the Legislature enacts a 2010–11 state budget plan. The budget problem consists of a $6.3 billion projected deficit for 2009–10 and a $14.4 billion gap between projected revenues and spending in 2010–11. Addressing this large shortfall will require painful choices—on top of the difficult choices the Legislature made earlier this year."
http://www.lao.ca.gov/2009/bud/fiscal_outlook/fiscal_outlook_111809.aspx
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