MARTINEZ, Calif. (KCBS) -- California technically ran out of cash Tuesday as the governor and the legislature once again missed the deadline to approve a spending plan for the new fiscal year without resolving how to close a $15 billion deficit.
Both Democrats and Republicans are still entertaining a proposal by Governor Schwarzenegger to borrow against future proceeds from the state lottery, despite its falling revenue.
Many types of gaming revenue are declining as the economy slows and people spend less, said Jean Ross with the California Budget Project, a non-partisan public policy research group. “Lottery sales in California are slowing, have actually turned negative.”
The governor is betting a measure on the November ballot will restructure the California Lottery so that its revenue would actually double.
(jro) |
KCBS's Dave Padilla reports
