California watchdog estimates $26 billion deficit just days after Gov. Newsom touts economy
The California Legislative Analyst’s Office estimates the revenue shortfall for the 2022-2023 fiscal year and announced the state entered into a recession in March of 2023.
By Kenneth Schrupp | The Center Square
Published: December 2, 2023 11:26pm
The California Legislative Analyst’s Office estimates the state will have a $26 billion revenue shortfall for the 2022-2023 fiscal year and announced the state entered into a recession in March 2023.
The news comes the day after Gov. Gavin Newsom defended Democrats' economic record in a nationally televised debate. State Republicans blame Newsom and California Democrats for nearly doubling the state’s budget over the last six years and called for reductions in government programs to protect critical government functions from severe budget cuts.
“Despite all warnings that it was unsustainable, the Majority party has increased state spending by $116 billion over the last six years, nearly doubling the general fund budget in that short time,” said State Sen. Roger Niello, R–Fair Oaks, in a public statement. “Hopefully, the majority will see it is time for a more realistic budget strategy, instead of throwing money at a laundry list of projects that sounds nice on the national television debate stage.”
The LAO estimates that if spending remains unchanged, the state is likely to have a $26 billion shortfall for 2022-2023, $19.1 billion for 2023-2024, and $13.3 billion for 2024-2025, totaling a $58 billion shortfall over the next three years.
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