The Briefing Room
State Chapters => California => Topic started by: mystery-ak on December 03, 2023, 04:08:15 pm
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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.
more
https://justthenews.com/nation/states/center-square/government-watchdog-estimates-26-billion-deficit-california-enters
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California is Facing a Huge Budget Deficit, Bad News for State Democrats
JOHN SEXTON 8:40 PM on December 08, 2023
Life was good so long as Democrats could spend at will. California has had budget surpluses for the past few years and that was great news for Gov. Newsom and state Democrats while it lasted.
Newsom’s first term in office was buoyed by record-smashing surpluses of more than $100 billion in some years. The money allowed him and his Democratic allies in the state Legislature to greatly expand government, including paying for guaranteed health insurance for all low-income adults regardless of their immigration status and free lunches for all public school students.
But the party is officially over now. Last year the state misjudged how much revenue would be brought in by taxes. Now the state is facing a projected deficit of $68 billion next year.
https://hotair.com/john-s-2/2023/12/08/california-is-facing-a-huge-budget-deficit-bad-news-for-state-democrats-n597743
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Sucks to be them. As Ayn Rand said, one can evade reality, but one cannot evade the consequences of evading reality.
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How is this bad new for dims? They pretty much get a blank check for re-election. No matter how bad it gets for their citizens..
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Yet his debate opponent, DeSantis's state is running a surplus
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California Faces Astounding Budget Deficit As Residents Flee To Red States
© Provided by State Of The Union
California is grappling with a significant budget crisis due to a substantial revenue decline, resulting in a record $68 billion budget deficit.
The state is experiencing an exodus of people and businesses to Republican-run states, further exacerbating the financial strain.
The non-partisan Legislative Analyst’s Office (LAO) report highlights the exponential growth of the deficit, emphasizing the need to tap into cash reserves and reduce spending on schools and community colleges.
The report also suggests the state must consider increasing revenue, cutting spending, or a combination of both for a long-term solution.
Additionally, the state experienced its first-ever population decline in 2020 due to COVID-19 lockdowns.
https://www.msn.com/en-us/money/markets/california-faces-astounding-budget-deficit-as-residents-flee-to-red-states/ar-AA1lhIna?ocid=msedgdhp&pc=U531&cvid=af9660b850054ec09ec5486d5042fd7f&ei=17
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tap into cash reserves and reduce spending on schools and community colleges.
But not welfare and illegal immigration? :shrug: