California is expected to have a $25 billion budget deficit in 2023-2024 as people and businesses leave the state in droves, according to a projection by the state’s Legislative Analyst’s Office (LAO).
LAO predicted in a Wednesday report that the California budget will operate in a deficit due to tax revenue falling $41 billion below budget projections from fiscal year 2021-2022 through fiscal year 2023-2024. Recent statistics show that there is less corporate and start-up activity in the state, with corporate tax revenue expected to decline by $6 billion from fiscal year 2021-2022 to fiscal year 2023-2024, according to LOA.
“Under our outlook, the Legislature would face a budget problem of $25 billion in 2023‑24. 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,” according to the report.
[So much for that Newsom presidential run … – Ed]
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