California’s budget crisis could be wider than previously thought, reaching a record $73 billion deficit, according to a new report from the state’s nonpartisan Legislative Analysis Office (LAO). It is said that there is.
The LAO made grim predictions in a report Tuesday, warning that a $24 billion “reduction in revenue” would equate to a $15 billion increase in state budget problems. As a result, the budget deficit, which was estimated to reach $58 billion last month, could now reach $73 billion.
“The actual increase in the state’s budget problem will depend on a number of factors, including spending changes under the formula, particularly Prop. 98’s spending requirements for schools and community colleges,” the report states.
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California Gov. Gavin Newsom’s office previously told Fox News Digital that he “remains fiscally responsible.” (Justin Sullivan/Getty Images)
H.D. Palmer, deputy director of the California Department of Treasury and budget affairs spokesperson for Newhomme, tells FOX News Digital that the budget shortfall is different from the $38 million they estimate, reacting to LAO’s new report. Told.
“We expect to collect more than $51 billion in income and corporate tax revenue between now and April,” Palmer said. “No one can say with certainty today how these numbers are likely to change the budget estimate of a $38 billion shortfall.”
“Congress would take the responsible step now by taking the fast-track funding needed for an $8 billion solution to close this gap,” he added.
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California has experienced a large population exodus in recent years. (Getty Images)
The expected bad news comes as Newsom seeks to increase his national profile. It also happened during a massive population exodus in California.
In 2020, California experienced its first ever population decline as the state imposed strict lockdowns amid the coronavirus disease (COVID-19) pandemic. From January 2020 to July 2022, the state lost well over 500,000 people, with nearly 700,000 people moving out and moving in.
California Governor Gavin Newsom is visiting China. (Governor Gavin Newsoms Office)
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Census data shows Texas is the most popular destination for residents evacuating the state, followed by Arizona, Florida and Washington state.
Fox News Digital’s Brandon Gillespie contributed to this report.
