California’s Treasurer says he thinks mid-year budget cuts are a possibility. Bill Lockyer says he’s more skeptical than some about the extra four billion dollars in revenue state lawmakers are counting on to balance the budget. If that money doesn’t materialize, lawmakers have built in so-called “trigger cuts:”
“I won’t be surprised if the trigger gets pulled, but I’m not sure it will be the big trigger. It’s more likely that it’s one of the smaller ones–the smaller trigger,” said Lockyer.
Lawmakers built in a series of cuts that could be phased in, depending on how much revenue turns up. They include deeper cuts to higher education and social services, as well as chopping up to seven days off the school year.
Lockyer says at this point, the jury is still out, but he’s monitoring the situation daily.
May and June revenues fell several hundred million dollars short of what lawmakers assumed in the budget.