California’s Legislative Analyst’s Office announced Tuesday the state’s budget deficit is much larger than Gov. Gavin Newsom’s (D-CA) projected $38 billion shortfall.
In the report, the state’s newly confirmed $73 billion deficit is $15 billion more than the $58 billion the office previously projected when Newsom introduced his budget in January.
“Roughly, a $24 billion erosion in revenues corresponds to a $15 billion increase in the budget problem. This would expand the $58 billion estimated deficit to $73 billion under our updated revenue forecast,” the report stated.
The report listed several places where spending cuts can be made in order to obtain an estimated $16 billion in savings to help state lawmakers balance the budget. The report proposed possible budget solutions such as increasing revenue, cutting back on one-time and ongoing spending, and
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