The flight of wealthy people from California is getting serious… pic.twitter.com/NmfyqHW3RC
— @amuse (@amuse) February 22, 2024
California’s Budget Deficit Is Even Worse Than Originally Projected.
The last time we checked on California’s budget, the deficit was a whopping $68 billion, which was twice the original amount (due to Bidenomics).
The deficit has grown considerably since that December report. It now stands at $73 billion.
The tug-of-war between California Gov. Gavin Newsom and the nonpartisan Legislative Analyst’s Office [LAO] over the state’s projected budget deficit took a new turn Tuesday, when the LAO announced a revised shortfall of $73 billion — $15 billion more than previously forecast, and significantly more than the $38 billion gap that Newsom has estimated.
The LAO reported that recent revenue collection data “reflect even further weakness” for the state’s financial outcome.
“All else equal, this means the budget problem is likely to be higher” when the governor gives his revised projection of the state’s finances in May, the LAO said in a Tuesday update.
The LAO said that the actual budget shortfall will depend on a variety of factors, such as mandatory Proposition 98 spending on schools and community colleges.