Jerry Brown's Obama Condition

 Toyota's climb back to the top looks like a few short steps compared to what California is going to have to do. Even with a recent bill passed to close up a $19 billion dollar shortfall, California managed to fall into deeper budgetary crisis. Much like Bush's gift to Obama, Schwarzenegger will be passing California on to Brown in less than 'spick and spack' fiscal condition. The New York Times reports:

Five weeks after the Legislature passed a budget that promised to close a $19 billion budget shortfall, California has sunk back into yet another fiscal crisis, this time facing a $26 billion gap that is posing a major new challenge for the incoming governor,Jerry Brown, and seems almost certain to force deep cuts in a state already reeling from three years of financial turmoil.

The departing governor,Arnold Schwarzenegger, has called a special session of the Legislature for Dec. 6 to begin dealing with one part of the problem: a projected $6 billion shortfall in the $126 billion budget passed in October, a record 100 days late. Mr. Schwarzenegger’s aides said the governor, a Republican who has fought repeatedly with Democrats in pushing through deep spending cuts, would propose another round of reductions to get the state through the end of this fiscal year in June.

 While Schwarzenegger's administration is packing and telling everyone they've done their best, Brown must propose a new budget in January for 2011. California's estimated budget shortfall for next year is an estimated $38 billion including the shortfalls of the propositions Californians voted in this November. Brown's pledge not to raise taxes without voters' approval may be a hard pledge to follow through with in the next several years.