From Mish's Global Economic Trend Analysis:

California's "Fantasy Land" budget finally comes to light of day. Jerry Brown said "I'm shocked. The mess is much worse than I thought."

In turn, educators and unions were shocked by Jerry Brown's and state treasurer Bill Lockyer's statements "cuts are coming". Brown promised more cuts but no tax increases without voter approval.

The LA Times reports Brown wants to fast-track budget agreement within 60 days.

Governor-elect Jerry Brown said Tuesday that he wants to complete a budget agreement within two months of unveiling his budget, an accelerated timeline that would allow a late-spring special election for potential tax increases or other revenue generation.

"We'll present a budget on January 10. It will be a very tough budget, but it will be transparent," he said. "We'll lay it out as best I can. We've been living in fantasy land...
 
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More on California:

California is barrelling towards "fiscal meltdown"

Top analyst Whalen: California will default on its debt

Shocking figures show California gov't workers are making unbelievably high salaries