California faces budget deficit despite nearly 0 billion surplus last fiscal year
California will likely face a $25 billion budget deficit next year driven by high inflation and the threat of a recession, despite lofty projection...
California will likely face a $25 billion budget deficit next year driven by high inflation and the threat of a recession, despite lofty projections in May that forecast a surplus of nearly $100 billion for the current fiscal year. The Legislative Analyst's Office, which provides state lawmakers with fiscal and policy advice, said the 2023-24 budget problem is due to low revenue estimates. Revenues are $41 billion below expectations, according to a forecast published by the LAO. The estimated deficit is lower because some of those revenue losses were offset by lower spending in other parts of the budget.