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Question marks loom as federal cuts begin

March 01, 2013|By Chris Megerian

Now that President Obama and congressional leaders have failed to reach a deal on the federal budget, billions of dollars in spending cuts will begin taking effect.

At this point, however, it's not clear exactly how they will affect California's budget. It remains to be seen when the cuts will reach the state and how state agencies will be forced to respond, said H.D. Palmer, a spokesman for Gov. Jerry Brown's Department of Finance.

Palmer said officials were still waiting for more guidance from the federal government.

So far, the White House has released a broad overview of various spending cuts. Jason Sisney, a deputy at the Legislative Analyst's Office, said the state could also lose "a few billion dollars" in tax revenue if the economy slows down because of the standoff in Washington.

Any hit to the budget would be unfortunate for Brown, who has declared that California is back in the black after a years-long budget crisis.

 "The governor acknowledged the risk and uncertainty when he introduced the budget back in January," Palmer said.


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Twitter: @chrismegerian

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