California will have a budget shortfall of $54.3 billion because of the economic devastation wrought by the coronavirus, Gov. Gavin Newsom's administration announced Thursday, a stunning reversal for a state that had a $21 billion surplus a year ago.
The state has been under a mandatory stay-at-home order since mid-March, forcing nonessential businesses to close and prompting more than 4 million Californians to file for unemployment benefits. After recording record low unemployment of 3.9% at the start of the year, the Newsom administration now predicts a jobless rate of 18% for the nation's most populous state — 46% higher than the height of the Great Recession a decade ago.
Newsom hinted at the bleak numbers on Wednesday when he called the unemployment figures “Depression-era numbers.â€
“These numbers are jaw dropping,†Newsom said. “
I just hope that people are preparing themselves ... for the effort that we all need to engage together to undertake to unwind that and get back on our feet.â€
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https://www.nbclosangeles.com/news/national-international/california-doom-staggering-54-billion-budget-deficit-looms/2358680/In other words, the guv is saying "Get ready to open those wallets, 'cause we're coming for more in taxes."