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