The Briefing Room
State Chapters => California => Topic started by: mystery-ak on November 17, 2022, 04:08:51 pm
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Shock: California Projects $25 Billion Deficit — After $98 Billion Surplus
Joel B. Pollak 16 Nov 2022
The State of California will suffer a $25 billion deficit in 2023-2024, despite enjoying a record-setting $98 billion budget surplus this year, according to new analysis from the nonpartisan Legislative Analyst’s Office.
The new projections, released Wednesday, come just over a week after elections in which Democrats, including Gov. Gavin Newsom (D), were reelected to every statewide office after a year of lavish public spending.
The Legislative Analyst’s Office explained that the deficit could be even worse, if a recession is particularly bad (original emphasis):
Under our outlook, the Legislature would face a budget problem of $25 billion in 2023‑24. (A budget problem—also called a deficit—occurs when resources for the upcoming fiscal year are insufficient to cover the costs of currently authorized services.) The budget problem is mainly attributable to lower revenue estimates, which are lower than budget act projections from 2021‑22 through 2023‑24 by $41 billion. Revenue losses are offset by lower spending in certain areas. Over the subsequent years of the forecast, annual deficits would decline from $17 billion to $8 billion.
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The $25 billion budget problem in 2023‑24 is roughly equivalent to the amount of general‑purpose reserves that the Legislature could have available to allocate to General Fund programs ($23 billion). While our lower revenue estimates incorporate the risk of a recession, they do not reflect a recession scenario. Based on historical experience, should a recession occur soon, revenues could be $30 billion to $50 billion below our revenue outlook in the budget window.
more
https://www.breitbart.com/economy/2022/11/16/shock-california-projects-25-billion-deficit-after-98-billion-surplus/
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Good. Vote Rat, feel the pain.
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“The problem with socialism is that you eventually run out of other people's money.”
Margaret Thatcher
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Poor Noisome, he no longer has Aunt Nan to pull his chestnuts out of the fire by shifting money to cover his incompetence, he'll just have to fall back on the old democrat standby of robbing the highway funds and shift them to the general fund, because God forbid they quit their insane subsidizing of illegals and lazy asses.
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“The problem with socialism is that you eventually run out of other people's money.”
Margaret Thatcher
And the other people (with their money) say goodbye and leave.