California Budget Deficit Grows to $73 Billion Due to Declining Tax Revenue

According to state analysts, California budget deficit grew $15 billion to a $73 billion for the 2024-2025 fiscal year due to declining tax revenues. The non-partisan, state-funded Legislative Analyst’s Office, which announced the new deficit figures, identified approximately $15.6 billion in one-time or temporary spending through the 2025-2026 fiscal year that could be used to offset the the state deficit. Under the state constitution, the governor’s office must submit a draft budget to the legislature by January 10. After input from stakeholders ranging from consultants to lobbyists and the California Department of Finance, the governor’s office produces a revised draft budget by May 14, which the legislature then may amend and pass by June 15.