As revenues continue to fall, California may face a $7 billion higher budget deficit than the governor forecast in January, according to the state’s Legislative Analyst’s Office.
“Although the Governor’s budget revenue estimates are reasonable, they are likely a bit too high,” according to Legislative Analyst Gabriel Petek’s 2023–24 Multiyear Assessment report issued Feb. 15.
The office estimates revenues will be about $10 billion lower than Gov. Gavin Newsom’s budget proposal, which could raise the total expected deficit to about $29.5 billion.
Newsom described the budget picture as “very volatile” when unveiling it Jan. 10, adding that he plans to revise it in May when “there’s more clarity.”…