State Reports $1.445-Billion Deficit
SACRAMENTO — 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.
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