Governor Gray Davis has reported that the state's budget deficit now totals $34.8 billion. This figure is up $13.8 billion from the previous estimate of $21 billion released earlier this fall. Governor Davis also announced his appointment of a new director of the Department of Finance to fill the shoes of outgoing director, Tim Gage.

Former State Senator and Budget Chair, Steve Peace, will take over for Gage and guide the Department of Finance through the fifth annual budget that Governor Davis has produced.

Insiders believe the Governor is disseminating the new $34.8 billion figure three weeks ahead of schedule in an attempt to jumpstart the Legislature’s efforts in passing legislation to enact some of Davis' proposed $10 billion in recommended budget cuts. The special session of the Legislature met for only two days in December without taking action on Davis' proposal and has adjourned until Monday, January 6, 2003.

ACWA will continue to monitor the situation and post the latest information on the budget crisis as developments warrant.

Water districts with specific state budget questions about media and communications/outreach can contact Jennifer Persike, Director of Communications & Outreach, at JenniferP@acwa.com. Technical, content or strategy questions can be answered by Wendy Ridderbusch, Legislative Advocate, at WendyR@acwa.com