Even if Gov. Arnold Schwarzenegger wins approval for his bond measure and all of his budget proposals, he still will face a budget gap of more than $7 billion a year from now and an ongoing shortfall of about $5 billion, Legislative Analyst Elizabeth Hill said in her comprehensive review of the governor's fiscal plan. Hill said another $4 billion of Schwarzenegger's proposals pose a significant risk to the state's bottom line because the chances of them being achieved are doubtful at best. Hill recommended about $600 million in additional budget savings and listed further options for about $3 billion in cuts and $3 billion in revenue without broad-based tax increases. "The economy will not solve this for us," Hill told reporters. "We need more ongoing solutions to get the state's fiscal house in order." Here is her full report.
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