CA Legislative Analyst Sees Bad Budget News For Next 2 Years
California’s Legislative Analyst Office (LAO) is taking a look at Governor Gavin Newsom’s 2023-2024 proposed budget and comparing it to current and projected tax revenues.
The outlook is not good.
According to the LAO, a downturn in revenues from personal income tax, corporate tax, and sales tax, have led to a shortfall that amounts to 11-billion-dollars less than projected in the Governor’s budget.
And California is already staring at a budget deficit of more than 30 billion dollars.
Back in 2022, California had a 98 billion dollar surplus.
Revenues are not expected to increase substantially for at least two years.
The LAO’s conclusion is California is at real risk of falling into recession.
The State’s downturn is being attributed to weakness in the technology sector and a decline in investments in California businesses.
Sad woman showing her wallet with dollars being sucked out of it.
Photo from Alpha Media Portland OR