California Faces $25 Billion Deficit After Years Of Surplus

OAKLAND, CALIFORNIA - FEBRUARY 09: California Gov. Gavin Newsom speaks during a bill signing ceremony at Nido's Backyard Mexican Restaurant on February 09, 2022 in San Francisco, California. California Gov. Gavin Newsom signedlegislation to extend COVID-19 supplemental paid sick leave for workers. (Photo by Justin Sullivan/Getty Images)

At a glance

  • The Legislative Analyst’s Office released its report on Wednesday, emphasizing the upcoming $25 billion deficit, which they say is mostly due to “lower revenue estimates.”
  • The state’s last budget was $308 billion with a $97 billion surplus, and the year prior to that, the budget was $263 billion with a $76 billion surplus. The state currently has $37.2 billion of reserves.
  • “It’s not insignificant, but it’s also manageable,” Legislative Analyst Gabriel Petek said. “We don’t think of this as a budget crisis.”

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