SACRAMENTO
California will face persistent budget deficits over the next 20 years unless officials take corrective steps that could include ending state support for the University of California and asking voters to raise property taxes to pay for public works projects, Treasurer Bill Lockyer said Monday.
The annual debt affordability report prepared by the treasurer’s office projects an average yearly gap between revenue and spending of 3.5 percent, which would translate to a $14.6 billion shortfall in the fiscal year starting July 1, 2027, according to Lockyer.
“The sooner we get to fixing this problem, the easier and the smaller is the impact in the out years,” he said during a conference call with reporters. “They really should focus on this and get the job done soon.”
The 60-page report suggests a variety of steps lawmakers and the governor could take to balance the state budget, including:
Increasing the energy efficiency of state buildings, saving an estimated $363 million over 10 years.
Raising another $670 million a year by finding a way to collect unpaid sales taxes on purchases made through the Internet and mail order catalogs.
