State Reports $1.445-Billion Deficit
The state ended the 1987-88 budget year last summer with a deficit of $1.445 billion calculated under generally accepted accounting principles, the auditor general’s office said today.
The Deukmejian Administration said the state treasury had a slim surplus of $4 million when the budget year ended June 30, 1988, but a variety of other state fiscal experts have disputed that finding. The $1.445-billion figure offered by acting Auditor Gen. Kurt Sjoberg was the highest yet in assessing the state’s financial condition for 1987-88, when a $1-billion revenue shortfall materialized in April in personal and corporate income tax receipts.
The perilous condition of the treasury was exacerbated, Sjoberg said, by a $1.1-billion tax rebate that Californians received a few months before the shortfall surfaced.
Get the L.A. Times Politics newsletter
Deeply reported insights into legislation, politics and policy from Sacramento, Washington and beyond. In your inbox three times per week.
You may occasionally receive promotional content from the Los Angeles Times.
