The development is the latest revelation in a budget scandal that has state officials on the defensive and threatens to undermine Gov. Jerry Brown's push for a voter-approved tax increase.

Embedded in a Monday report from the California controller is a statistic showing just how much the state is straining to pay its bills before November's vote on higher taxes.

The additional $25 million that lawmakers agreed to provide from the state’s year-end surplus is for next year alone.

"It's very complicated to reconcile these accounting things," said Jason Sisney, who tracks revenue for the Legislative Analyst's Office.

More than $2 billion in California taxpayer money has apparently been stashed in hundreds of special funds unaccounted for by the state Department of Finance

The state's budget chief says the state will lose $220 million in one-time funds from 2013 to 2014, so state department budgets will have to be austere again.

Huge cuts won't be entirely avoided unless voters approve the amendment that would transfer of nearly $146 million from the Alabama Trust Fund to the General Fund.

Over half of U.S. states will have to close a combined budget gap of 55 billion dollars, according to a report by the Center on Budget and Policy Priorities in the 2013 fiscal year. To avoid raising taxes, most states are implementing continued cuts to deal with budget shortfalls.

Since its inception, the North Carolina Education Lottery has brought in $2.45 billion for the state, including $457 million this year. However, $2.45 billion is not even a third of this year's education budget, and lawmakers have replaced or supplanted lottery dollars over time to help balance the state budget.

State finances are not transparent and often include hidden liabilities as well as rapidly growing responsibilities which are difficult to control.  While state revenues are gradually recovering from the drastic decline of the Great Recession, they are not growing sufficiently to keep pace with the spending required by Medicaid costs, pensions, and other responsibilities and obligations.  This has resulted in persistent and growing structural deficits in many states which threaten their fiscal sustainability.

Was the slow recovery of the U.S. economy from the trough of the Great Recession anticipated? 

Alternative views on the problem the United States is facing: financing retirement consumption as its population ages.

State finances are not transparent and often include hidden liabilities as well as rapidly growing responsibilities which are difficult to control.  While state revenues are gradually recovering from the drastic decline of the Great Recession, they are not growing sufficiently to keep pace with the spending required by Medicaid costs, pensions, and other responsibilities and obligations.  This has resulted in persistent and growing structural deficits in many states which threaten their fiscal sustainability.

Because many states do continue to rely on the gimmicks, SBS tracks what financial games the states are playing.  The gimmicks are many and varied.  This is an overview of many of the gimmicks that states have recently used.

State Budget Solutions' second annual state deficit report reveals aggregate state debt presently exceeds $4 trillion. While states themselves can rely on budget gimmicks to hide the extent of the deficit, SBS takes a straightforward approach to calculating total state debt. See where your state ranks.

This paper examines the fiscal health of the 50 U.S. states. As this paper shows, accounting for implicit pension liabilities provides a significantly more negative picture than does explicit debt information on its own.

Gov. Malloy has proposed dozens of tax increases across 25 categories of taxes. This is a conservative count; we aren't counting each separate expansion of the sales tax as a separate tax hike, though of course they are.

Both the decision to raid special funds and the revelation that several may have excess balances or be obsolete provokes one to ask, "Just how many special funds are there, and what is their total in excess balances?" This paper aims to create a starting point for answering that question and to provoke policymakers and taxpayers alike to support a complete audit and publication of all Hawaii State funds - not just special funds - for the purposes of transparency and accountability in government.

There is no government or private sector budget with items labeled "government waste," or "junket" or "fraud and abuse." When the Idaho Freedom Foundation began reviewing state and local government records in search of waste, elected officials and bureaucrats claimed that there is very little to discover--that with the recession and cost-cutting measures at all levels of government, there's no room for frills. As it turns out, that was hardly the case, and no one should be surprised.

This chart shows thatstates have closed $169 billion in budget gaps and that a $127 billion gape remains. This is, however, overstated.  It is important to get the total spending in each state. In some cases, the legislature may cut general fund spending but use money from other funds.  It is also important to consider borrowed money and federal funds, whjch can result in an increase in spending.  In many cases the "closed budget gaps" is the difference between what governors wanted to spend and the revenue forecast and is not the current budget versus the previous budget.  Total general fund spending and total all funds spending for last budget must be compared with the current budget and next years' budget.

State Budget Solutions recommends that state legislators take action in 2013 to resolve the serious state financial crises by changing their focus from inputs to outcomes by redesigning budgets from the ground up based on priorities and performance.

States should use the budget solutions of avoiding budget gimmicks and use any additional revenue to first eliminate all the dubious financial devices from budgets and to avoid state debt.

The Citizens' Budget includes legislative, constitutional, and policy recommendations to close the looming state budget gap - without raising taxes - and move Colorado towards sustainable government for good.

While several improvements have been made to bring Florida's tradition of "Government in the Sunshine" into the 21st Century, it seems appropriate that the year that marked the anniversary of the beginning of Florida's tradition of "government in the sunshine" also became the year in which
Florida took an important leap towards living up to its nickname of the "Sunshine State," particularly in the area of government finance.

To reestablish Illinois as an economic powerhouse, the Institute has proposed "Budget Solutions 2012," an alternative that does not rely on the state's recent tax hikes as a revenue source, does not include borrowing and has positive cash flow for fiscal year 2012 - all while funding core services the poor and disadvantaged rely upon.

Case study of New Jersey's five public pension plans and exploration of possible solutions, including shifting all newly hired employees to a defined contribution pension model based upon the plan already offered to New Jersey's university employees and continuing current reforms lowering pension replacement rates and, if possible, extended to current employees.

Many governors and state legislators are using accounting gimmicks and federal stimulus funds to temporarily balance their budgets. When federal funds run out in a year or two, these states will face a spending cliff, necessitating a significant downsizing of their state budgets.

In a period when financial markets and institutions have appeared near collapse, the accounting methods used by public employee pensions effectively ignore risk. These accounting methods, which are used by public pensions in Arizona and around the country, allow pension fund managers to assume that high returns can be earned through stocks and other investments without taking any market risk. As a result, the true market value of Arizona pension shortfalls that must be funded by taxpayers is understated by around half of what the pension funds have reported.

This paper establishes a basic framework that can be used to assess long-running fiscal practices in the states against a standard of fiscal prudence.