They had a huge surplus from all the federal COVID aid. Now that it’s gone, they’re broke.
Hey.
I haven’t gotten my latest Nusome bribe yet.
Hey, spreading cash around to steal an election costs like crazy these days, ya know?
I’m just waiting for this whole House of Cards to fall apart.
If there was a $98 billion dollar Surplus one year and $25 billion deficit the next year, wouldn’t the state still have 73 billion dollars in the bank at the end of the next year?
If there is some danger of the State running out of cash because of this projected deficit than something is definitely wrong.
They cooked the books before the election the release the revised numbers after.
Totally unexpected. /s
Democrat Party corruption and incompetence.
Interesting how this comes out just a week after the
election. I’m sure no one wanted an update on this
before it was too late to change their vote.
I’ll tell you how it’s possible. The state coffers were filled the past few years due to massive capital gains resulting from the sale of stock of employees of tech companies like Apple, Facebook (Meta), Google (Alphabet), etc. That ain’t happening this year, as most of those stocks are down and many of the gazillionaires at the top have already cashed out.
Under our outlook, the Legislature would face a budget problem of $25 billion in 2023‑24. (A budget problem—also called a deficit—occurs when resources for the upcoming fiscal year are insufficient to cover the costs of currently authorized services.) 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. Over the subsequent years of the forecast, annual deficits would decline from $17 billion to $8 billion.
…
The $25 billion budget problem in 2023‑24 is roughly equivalent to the amount of general‑purpose reserves that the Legislature could have available to allocate to General Fund programs ($23 billion). While our lower revenue estimates incorporate the risk of a recession, they do not reflect a recession scenario. Based on historical experience, should a recession occur soon, revenues could be $30 billion to $50 billion below our revenue outlook in the budget window.
California’s revenues soared in the past two years, thanks to a speedy economic recovery that began under President Donald Trump, and massive transfers from the federal government under President Joe Biden.
The state was so flush with cash that Newsom sent lower-income households a “Golden State Stimulus” before his recall election last year, and sent them $400 checks to offset higher fuel costs before this year’s election.
However, California’s state budget is exceptionally sensitive to shifts in the national economic outlook, as it depends heavily on tax revenues from a very small group of high earners in Silicon Valley and Hollywood.
I never believed the first number.....Pretty sure I called BS on that!!!
Deficit or surplus, whichever is the best, pro-Demcratic propaganda of the hour.
Some kid probably sank it all into FTx……
How is it possible? You have to ask?
The Patriarch of the most powerful family in California just got caught B*ttF***ing an illegal alien homeless guy.
California is just too stupid to survive. As is America.
And Gavin’s Aunt Nancy won’t be able to print trillions for him in a few weeks.
Reality is sauntering their way, carrying a big stick. The big losers will be the state employees with retirement pensions.
Was it Reagan who said if socialists took over Arabia, they would shortly run out of sand?
Really? Democrats have their hands on a huge pot of gold and their voting groups want a piece. Housing, feeding and healthcare for the hordes of immigrant invaders is very expensive.