State Deficit Jumps to $21 Billion

California is facing a new financial crisis, as the projected budget deficit for next year has now ballooned to $20.7 billion, according to the nonpartisan Legislative Analyst’s Office. The news comes just four months after the governor and legislative leaders slashed $24 billion from this year’s budget. And according to the Chron, Governor Schwarzenegger is against raising tax increases to help solve the new crisis, which is being caused primarily by declining revenues because of the recession.