Author Topic: Shock: California Projects $25 Billion Deficit — After $98 Billion Surplus  (Read 533 times)

0 Members and 1 Guest are viewing this topic.

Offline mystery-ak

  • Owner
  • Administrator
  • ******
  • Posts: 358,702
  • Gender: Female
  • Let's Go Brandon!
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.


    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.

Don't forget 10% for the "Big Guy"
Support the USO
Democrat Party...the Party of Infanticide

I have come to the conclusion that one useless man is a disgrace, that two become a lawfirm & that three or more become a congress." -John Adams

“Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.”

-Matthew 6:34

Offline Free Vulcan

  • Technical
  • *****
  • Posts: 20,783
  • Gender: Male
  • Ah, the air is so much fresher here...
Good. Vote Rat, feel the pain.
We are two countries now.

Go with the army you got.

We have wandered into the territory of dictatorship.

Offline LMAO

  • Hero Member
  • ****
  • Posts: 8,383
  • Gender: Male
“The problem with socialism is that you eventually run out of other people's money.”

Margaret Thatcher
I have little interest in streamlining government or in making it more efficient, for I mean to reduce its size. I do not undertake to promote welfare, for I propose to extend freedom. My aim is not to pass laws, but to repeal them.

Barry Goldwater

My Avatar is my adult autistic son Tommy

Offline GtHawk

  • Hero Member
  • ****
  • Posts: 14,798
  • Gender: Male
  • I don't believe in if anymore, if's an illusion.
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.

Offline Smokin Joe

  • Hero Member
  • *****
  • Posts: 49,104
  • With my back to the darkness...
“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.
How God must weep at humans' folly! Stand fast! God knows what he is doing!
Seventeen Techniques for Truth Suppression

Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience.

C S Lewis