Commentary
The (spiked) punchbowl has been removed. The party’s over. The massive budget surpluses of recent years are gone with the Santa Ana winds.
Inevitably, in California, that means calls for new tax increases—in the state already suffering the country’s highest taxes. That’s happening as 700,000 people have exited in the last two years due to the state’s high cost of living, including the punishing revenue grabs.
The nonpartisan Legislative Analyst just raised by $7 billion its estimated deficit for fiscal year 2023-24, which begins on July 1. Followed by their chart, it found:
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. Although the Governor’s budget revenue estimates are reasonable, they are likely a bit too high….