The California budget deficit has reached $68 billion, according to an announcement made Thursday by the Legislative Analyst’s Office.
According to Politico, the amount is significantly greater than the June estimate of $14.3 billion, and it coincides with a decline in tax revenues throughout the Golden State. Fortunately, Sacramento does not face an entirely negative outlook, as the state possesses the necessary resources to tackle the situation, specifically a substantial cash reserve.
“The state remains in a good cash position, and that wasn’t the case back at the start of the Great Recession. We don’t face the same kind of liquidity challenges that we had at that time, and so I would stop short of describing it as a crisis,” LAO Analyst Gabriel Petek told the outlet.
Democratic Governor Gavin Newsom, who last week boasted about the achievements of the Golden State during a televised debate with Florida Republican Governor Ron DeSantis, views the numbers as something of a black eye.
The news source noted that Newsom will likely be required to implement substantial cost reductions in order to accommodate the unforeseen deficit.
Newsom is expected to release an updated budget proposal and deficit projections in May of next year, but with his sights very likely set on the presidency, it’s uncertain how invested Newsom is on remedying this issue.
Ryan DeLarme is an American journalist navigating a labyrinth of political corruption, overreaching corporate influence, a burgeoning censorship-industrial complex, compromised media, and the planned destruction of our constitutional republic. He writes for Badlands Media and is also a Host and Founder at Vigilant News. Additionally, his writing has been featured in American Thinker, the Post-Liberal, Winter Watch, Underground Newswire, and Stillness in the Storm. He’s also writes for alt-media streaming platforms Dauntless Dialogue and Rise.tv. Ryan enjoys gardening, kung fu, creative writing and fighting to SAVE AMERICA
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