California budget nut remains tough to crack

Everyone has considered that the end of California's budget gap of $25 billion-plus was going to be tough. Even for a new governor elected with a deep majority has not thought this.

However some complications were faced by Gov. Jerry Brown.

There was an extension in tax and budget cuts in welfare and healthcare which would lead to decrease the deficit to about $15 billion. On the other hand it includes savings in newly negotiated contracts which were done with the state's correctional officers and other unionized employees.

It is expected that the contracts will save the state general fund money in the coming future, but not nearly so far as the more than $300 million Brown originally claimed.

However the external state legislative analyst has placed the savings in the next fiscal year at only about $180 million and has stated that the contracts would raise costs starting early from year 2012-13. This has become a problem raised for Brown because the loss from expectations will make it tough so as to obtain the Republican votes which are needed for the Legislature.