California's budget problems are far from over.  The state Legislature's budget analyst announced yesterday that California is facing a 21-billion dollar budget shortfall over the next year and a half.  The deficit includes six-billion dollars from the current fiscal year that was supposed to have been taken care of in the budget deal signed last summer.  Nevada County State Senator Sam Aanestad says last year's budget agreement failed to make the cuts necessary.  He says we can say that we've cut but we really haven't. General fund expenditures are expected to be five billion dollars higher than was planned for last year. Aanestad also says increases in taxes failed to generate the revenues promised. He says while taxes were raised, it brought in less money and that is what many predicted would happen.

Nevada County Assemblyman, Dan Logue, says over-regulation and high taxes are driving revenues out of the state. He says no one should be surprised when hundreds of thousands of people are coming to California with no money, and the people who have the most money to pay the taxes are leaving the state. 

 Legislative Analyst Mac Taylor says lawmakers and the governor passed a budget that included risky assumptions.  Taylor says more cuts must be made and also suggests extending some of the temporary tax hikes approved in February.  Governor Schwarzenegger, who is currently in Italy after a visit to the Middle East, says he will meet with legislative leaders about the projected budget gap.  The governor added that he still opposes tax increases and that the state must live within its means.

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