All the spin, all the denials, and all the posturing, won't help.

The California budget deficit rapidly moving towards the $20 billion mark I estimated some time ago, will have a cascade effect on the finances of every city and county in the state.

Make no mistake about it.

While republicans, democrats, and the Governor gush out volumes of political speak, the situation worsens everyday. While local governments sit back and wait.

California has a structural budget problem that this Governor promised to remedy during the Davis recall effort. This has not occurred. And as long as a permanent solution isn't found, such as rebalancing the property tax and sales tax distribution formulas, revisiting Prop 98 and other mandates, the problem will balloon further next year as yet another round of Prop 8 property value assessment reductions occur.

The iceberg in the water is the fact that one time fix's will not work anymore. And as the 10% across the board reduction the Governor called for a short time ago approaches 14%, the call for tax and fee increases will gain momentum, as will pressure on weaker republicans in the Assembly to cave.

Expect a cut in California's credit rating and a very late budget folks.