California faces a multibillion-dollar budget deficit but Gavin Newsom and legislative leaders are using gimmicks to close the gap.
Receive a weekly digest in your inbox from Dan Walters, who shines a light on how elected officials spend your tax dollars.California faces a multibillion-dollar budget deficit that could last for years. Rather than treat it as a serious fiscal crisis, Gov. Gavin Newsom and legislative leaders are using gimmicks to close the gap.
The Legislature’s budget analyst, Gabe Petek, calculated that the real deficit over the remainder of the current fiscal year and through 2024-25 is, and warned legislators that the state faces annual deficits in the $30 billion range for the remaining three years of Newsom’s governorship. So far, Newsom and legislative leaders are ignoring Petek’s advice and are using wishful thinking, accounting gimmicks and borrowed money to fashion a budget they will portray as balanced, but would, as Petek says, make the state’s fiscal predicament even worse in future years..
Were California experiencing only as temporary gap due to recession, a case could be made for a jerry-rigged budget to minimize impacts on those who depend on money flowing from Sacramento. However, the state faces what budget mavens call a “structural deficit,” meaning there is a fundamental imbalance disconnected from the state’s overall economy.that the state was enjoying a $97.5 billion surplus, thanks largely to a $54.8 billion projected uptick in revenues.
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