(May 17, 2011) The Governor's May Revision confirms that a comprehensive budget solution is necessary for California's economic recovery.

"Certainty is the foundation for economic recovery and a comprehensive budget solution will create the certainty that job creators need," said Allan Zaremberg, President and CEO of the California Chamber of Commerce in a statement release yesterday. "Clearly, any long-term solution to the state's fiscal challenges will be found in growth and economic development."

The May Revision demonstrates that future revenues will be volatile and uncertain. While personal income taxes are above forecasts, revenues from sales and corporate taxes are weak. According to Zaremberg, the only path out of this on-going crisis is a bi-partisan, comprehensive budget solution that solves both short and long term budget issues. The elements of a comprehensive solution will do several things:

Recognize and correct the costly impact that our regulatory climate has on jobs here;

• Greatly improve our ability to compete with other states and globally, including support for K-12 and higher education;
• Reform state government; and,
• Ensure that California’s budget only relies on sustainable revenues and that we cannot and do not spend more than we have going forward.

"The Governor and legislators face a unique opportunity to restore confidence to an economy and an electorate both worn out from this seemingly endless budget crisis," said Zaremberg.