Governor warns of continued state deficit

Gov. Arnold Schwarzenegger on Monday said California faces a $15.4 billion budget deficit in the coming fiscal year, nearly double the previous estimate. AP n the Daily News.

He warned the shortfall will grow to $21.3 billion if votes reject the five budget-related measures on the May 19 special election ballot.

The governor outlined the state's dire fiscal condition in a letter to legislative leaders, a week before voters go to the polls. He also said he would release his annual May budget revision on Thursday, after previously saying he would do so after the special election.