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California’s Budget Deficit Is Much Worse Than Newsom Projected

California’s budget crisis is projected to expand more than previously thought and could hit a record deficit of $73 billion, according to a new report from the state’s nonpartisan Legislative Analyst’s Office (LAO).

The LAO laid out the grim forecast in a Tuesday report that cautions that a $24 billion “erosion in revenues” corresponds to a $15 billion increase in the state’s budget problem. Due to this, the budget deficit, which last month was estimated to hit $58 billion, could now go as high as $73 billion.

“The actual increase in the state’s budget problem will depend on a number of factors, including formula-driven spending changes, most notably Proposition 98 spending requirements for schools and community colleges,” the report said.

H.D. Palmer, the deputy director of the California Department of Finance and Newom’s spokesperson on budget matters, responded to the new LAO report by telling Fox News Digital that their budget shortfall differs from the $38 million they estimate.

“From now through April, more than $51 billion in income and corporate tax receipts are forecast to come in,” Palmer said. “No one can say today with certainty how those numbers may change the budget estimate of a $38 billion shortfall.”

“A responsible step would be for the Legislature to act now on the early action budget measures needed for $8 billion in solutions to help close this gap,” he added.

The projected bad news comes as Newsom has worked to increase his profile nationwide. It also occurred as California experienced a mass exodus.

California saw its first-ever population decline in 2020 when the state imposed rigid lockdowns during the COVID-19 pandemic. From January 2020 to July 2022, the state lost well over half a million people, with the number of residents leaving surpassing those moving in by almost 700,000.

Census data has shown that Texas is the most popular destination for residents fleeing the state, followed by Arizona, Florida, and Washington.

READ 22 COMMENTS
  • Me says:

    I kept telling Newsom “FREE EVERYING FOR EVERYBODY” is VERY EXPENSIVE. It’s gonna take more than “8-EASY-ANNUAL-INSTALLMENTS” the WOKE FRAUD sold him for.

  • george wilson says:

    More Pelosi DNA come home to roost: spend, spend, spend until the Congress takes your credit card away… Then they created MMT to take the restrictions off the dems CC limits! Fiat money, writ large! Dems haven’t found a situation yet that they feel that they can’t solve by throwing money at. Doesn’t work? Throw more money at it! An then some more, and more, and then more!
    Newsom as gov is practicing for his time in DC – running up $trillion deficits in Cal, practicing for his expected turn in the Oval Office! More! More! More! is the name of that game!
    Not a real expectation? Kamala, of all people, made it to one heartbeat away from becoming POTUS! The California Cabal at work! That’s why Jill has the WH security set up to keep Big K away from Joe! Far away! Keeping JB’s heartbeats safely tucked away in his Delaware refuges (another reason Joe is on holiday over 40% of the time!).
    Newsom is already ordering his new stationary…but his staff is teasing him about waiting until he can be POTUS 49, a real 49er…. But he will blow that one, he hasn’t got that kind of patience… However, if the dems and the CIA off DJT as 47, fantasy POTUS 49 becomes closer, and that starts to become a more exciting idea… Is that GN’s heavy breathing coming from Sacramento?…

  • Hog Jockey says:

    Newscum is garbage and his woman writes porn books for school kids. Thats all you need to know about this POS!

  • A. Michaels says:

    This begs the question, was he lying or just stupid? I say he’s a stupid liar.

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