California Gov. Gavin Newsom (D)’s projected budget deficit of $22.5 billion may have been too low by $7 billion, according to a report last week by the nonpartisan Legislative Analyst’s Office (LAO).
As Fox News notes, Newsom told Californians last month to expect a $22.5 billion deficit in the coming fiscal year — after a surplus of $100 billion, driven in part by federal grants for coronavirus relief spending.
Now, the LAO says, the deficit may be even worse. In a new report, it states (emphasis added):
Due to a deteriorating revenue picture relative to expectations from June 2022, both our office and the administration anticipate the state faces a budget problem in 2023‑24. Read more…
