California will likely have a $25 billion budget deficit next year, state officials announced, ending a run of historic surpluses and acting as a warning to other states about a potential recession.
“It’s not insignificant, but it’s also manageable,” Legislative Analyst Gabriel Petek said of the deficit. “We don’t think of this as a budget crisis.”
“The chances that the Federal Reserve can tame inflation without inducing a recession are narrow," the LAO said in its report. “Today’s report is another wake-up call to those warnings. We must refocus on fiscal responsibility,” said Fong, who is vice chair of the Assembly Budget Committee. California lawmakers could conceivably cover all of the deficit with the money it has in its savings accounts, but the Legislative Analyst's Office warned them not to do that. Their outlook predicts deficits not just for this year, but the next three years — although the size of the deficit decreases each year.
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Report: California likely to have $25 billion budget deficitCalifornia will likely have a $25 billion budget deficit next year. The nonpartisan Legislative Analyst's Office said Wednesday that state revenues are $41 billion below expectations.
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California likely to have $25 billion budget deficit in 2023, report saysThe deficit will likely lead to some painful spending decisions but won't affect programs like free kindergarten for 4-year-olds and free health care for low-income immigrants living in the country without legal permission.
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California likely to have $25 billion budget deficit: reportThis year, revenue is $41 billion below expectations, according to a report by the Legislative Analyst's Office.
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Report: California likely to have $25 billion budget deficitCalifornia will likely have a $25 billion budget deficit next year
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Report: California likely to have $25 billion budget deficitEarlier this year, lawmakers approved a spending plan that included a $72.4 billion surplus. That pushed total state spending above $300 billion for the first time. But tax collections have slowed significantly since then.
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California Likely To Have $25 Billion Budget Deficit, Report SaysDespite the gloomy outlook, California is in a better position to weather an economic downturn than it has been in the past.
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