The national and state economies are showing some signs of recovery, but California’s budget mess is going to make the comeback much tougher. That’s the message from UCLA’s Anderson Forecast released today.
Senior Economist Jerry Nickelsburg calls the state budget crisis a fly in the ointment.
Jerry Nickelsburg: "We don’t have a budget now, and the fiscal year begins in a couple of weeks. When we do get a budget, it’s going to involve a lot of spending cuts. That translates into job loss. So we’ll have job loss in state government while we’re trying to draw out of the recession, and that clearly is going to put a drag on the growth in California through 2010."
Nickelsburg said the state government could shed 60,000 jobs next year.