Reduced federal funding and a lagging economy would send shockwaves throughout a state that was projecting budget surpluses for the first time in a decade.
Brown's finance spokesman, H.D. Palmer, said the administration has not conducted its own estimate and suggested that state programs would not feel an immediate impact. But schools, public safety and other services would once again feel budget strains by mid-2013.
In a sign of California's vulnerability, the State Controller's Office released a monthly cash update Friday showing revenues were nearly 11 percent below the state's projections, or $807 million less than forecast. The state's unemployment rate remains in the double digits at 10.1 percent.
"Given the years of state budget constraints that have already passed, there are few simple or easy budget options to address a near term shortfall of that magnitude," said Deputy Legislative Analyst Jason Sisney.