Takasugi Warns of Possible Cutbacks

California’s economy is continuing to improve and tax revenues are up slightly, but that does not mean counties and cities will escape further cutbacks, Assemblyman Nao Takasugi (R-Oxnard) said Friday.

Although revenues are now expected to be $146 million above Gov. Pete Wilson’s earlier projections for the new fiscal year, beginning July 1, lawmakers are still looking to erase a $2.2-billion deficit to balance the state budget, Takasugi said.

“Wilson has said that he looks forward to not taking anymore money away from the cities at this time because he knows how hard they were hurt last year,” Takasugi said. “But don’t bank on it entirely, because the budget has not been drawn up yet.”

Even if cities and special districts do not lose any property tax revenues to the state this year, county government may still suffer some cutbacks, Takasugi said during a press conference at his Camarillo field office.

Legislators are still hammering out the details of the $41.5-billion state budget and do not yet know what cuts will need to be made, he said. Lawmakers must adopt a budget by June 30, though there is no penalty for missing that deadline.

Two years ago, the Legislature did not formally adopt a budget until the middle of September, forcing the state to issue IOUs to creditors.

“That caused a great deal of hardship,” Takasugi said. “Each of us is determined that we don’t have a replay of that kind of delay. It does no one good.”