“It’s flat-out unsustainable” – Calif. GOP Assembly Leader James Gallagher
FRESNO, CA (KMJ) It’s belt-tightening time for the Golden State.
The California Legislative Analyst’s Office released its latest report Thursday on the state’s revenue shortfall which has ballooned to a whopping $68 billion.
“California Faces a Serious Deficit,” analysts wrote. “While addressing a deficit of this scope will be challenging, the Legislature has a number of options available to do so. In particular, the Legislature has reserves to withdraw, one‑time spending to pull back, and alternative approaches for school funding to consider.”
Analysts also forecasted annual $30 billion deficits in future years. The LAO recommended leaving up to half of the state’s reserves intact to help mitigate those future shortfalls.
Next month, Governor Newsom will release his first budget proposal of the year, setting up what will be tense negotiations over how to address the dire financial situation.
Assembly Republican Leader James Gallagher (R-Yuba City) issued the following statement:
“It’s no coincidence that California’s budget deficit and Gavin Newsom’s disapproval numbers hit an all-time high on the same day. Both are the result of a checked-out governor who’s more interested in chasing the national spotlight than the business of running a state. “In the last five years, Newsom and legislative Democrats have increased spending by by more than 60%. It’s flat-out unsustainable. “In spite of this outrageous spending, Californians’ quality of life has collapsed. No wonder people are moving to Florida.”
The LAO’s report suggests lawmakers could alleviate the shortfall by cutting one-time spending, slashing school funding or tapping into the state’s tens of billions of dollars in reserves.
Legislative leadership floated drawing from its savings last year, but Gov. Newsom balked at the idea and they remained untouched.
