State $3.4 billion short, analyst says

Updated: May 9, 2001 - 12:04 p.m.

Legislative Analyst Elizabeth Hill dropped a budget bombshell Wednesday, saying that state revenues will be $3.4 billion less than expected in January.

This does not include the state’s huge electricity costs.

Not only will the reduced revenues wipe out proposed one-time expenditures on items such as clean beaches, it will also require cuts to ongoing programs -- to the tune of $1.7 billion.

Gov. Gray Davis had proposed spending $1.9 billion more than required on education; it looks now like that or other parts of the budget will be imperiled.

Sacbee.com will report more details as they become available.

-- Bee Capitol Bureau

-- PHO (owennos@bigfoot.com), May 09, 2001