State's deficit now put at $16 billion

The state's bleak financial outlook continues to worsen, and California now faces a $16 billion deficit - up $1.5 billion from the governor's forecast just over a month ago, an independent budget analyst said Wednesday. Mike Zapler in the Daily News.

The assessment by the nonpartisan Legislative Analyst's Office will likely compound the choices confronting Gov. Arnold Schwarzenegger and state lawmakers as they craft a budget for the fiscal year that starts July 1.

"We certainly recognize that very tough decisions are ahead," Legislative Analyst Elizabeth Hill said. "A sacrifice will have to be made by all Californians in order for the state to get its fiscal house in order."