By Tove Tupper & Associated Press
 
May 12, 2009
 
YREKA, Ca. - Gov. Arnold Schwarzenegger is warning that California faces a $15.4 billion budget deficit in the coming fiscal year, nearly double the previous estimate.
 
That will climb to $21.3 billion if voters reject the five budget-related measures on the May 19 special election ballot.
 
One of those measures, Proposition 1B, would give millions of dollars to California school districts, money that was already promised years ago. However, the schools did not receive it due to state budget cuts in previous years. The money would go towards classroom instruction, textbooks and educational programs. The budget the state gave schools for next school year is dependent on the proposition passing.
 
Meanwhile, Prop 1B won't go into effect unless Prop 1A passes, which increases the state's rainy day funds.
 
Even if both pass, Yreka High School Union District officials say they are unsure the proposed propositions will help bridge the budget shortfall.
 
"If it's a lot of smoke and mirrors, and just a way to politically get around the responsibilities and the tough decisions that the rest of us are expected to make everyday," says Yreka Union High School District Superintendent Mark Greenfield.
 
The governor outlined the state's dire fiscal condition Monday in a letter to legislative leaders, a week before voters go to the polls.
 
His spokesman, Aaron McLear, says the governor wanted to share the bad news with legislative leaders as quickly as possible.
 
In March, the legislative analyst projected an $8 billion deficit in the fiscal year starting July 1, but tax receipts have been way down. California faces a decline in personal income for the first time since 1938.
 
Proposition 1C, or the Lottery Modernization Act, would protect funding levels for schools who currently use lottery revenues. It would also increase payouts maintain state ownership of the lottery.
 
Prop 1F would prevent pay increases for elected state officials during tough economic times. It would include members of the legislature and the governor.