A Legislative Analyst's Office report issued this morning predicts the state will have a general fund budget shortfall of $20.7 billion by the time the Legislature enacts its 2010-11 budget. Part of the problem is a projected $6.3 billion deficit this year, the rest is a $14.4 billion gap between projected revenues and spending. State workers can expect no COLA or salary increases until at least 2015 (the report acknowledged the long wage freeze could have negative effects on departmental operations). The report also acknowledges, though isn't recommending, that "hundreds of millions of dollars" could be saved by extending the furloughs, increasing layoffs or cutting state workers' salaries. Read the LAO report here. Read Sacramento Bee coverage here.