State budget woes worsen

California's budget deficit will grow to $28 billion through June 2010 unless lawmakers take bold action to close the shortfall, possibly including a hike in the state income tax, the Legislature's nonpartisan analyst said Tuesday.AP in the Daily News.

The Legislative Analyst's Office urged lawmakers to act immediately on Gov. Arnold Schwarzenegger's proposals to close the deficit for this fiscal year, projected at $11.2 billion - about 11 percent of the state's general fund. They include a 1 percent sales-tax increase and $4.4 billion in across-the-board spending cuts.