California faces budget deficit again next year
Californiaâs chief budget analyst announced Wednesday that the state is projected to face a $25.4Â billion budget deficit for the next fiscal year, a figure that is much larger than what state officialsÂ were predicting just days ago.
According to the report from the nonpartisan Legislative Analystâs Office, the deficit projectionÂ is a result of a combination of recent legislation, budget restrictions passed by voters, andÂ predictions of a âpainfully slow economic recovery.â
The projected deficit amounts to about 29 percent of this yearâs general fund budget, and willÂ require several years of deep cuts and more tax collections to close.
State Republicans have committed to blocking any proposed tax increases, while DemocratsÂ have vowed to protect core programs and jobs, setting the stage for the possibility of moreÂ budget problems in the future.