Government Watchdog Estimates $26 Billion Revenue Shortfall as California Enters Recession

The California Legislative Analyst’s Office estimates the state will have a $26 billion revenue shortfall for the 2022-2023 fiscal year and announced the state entered into a recession in March of 2023. State Republicans blame Newsom and California Democrats for nearly doubling the state’s budget over the last six years and called for reductions in government programs to protect critical government functions from severe budget cuts. The LAO estimates that if spending remains unchanged, the state is likely to have a $26 billion shortfall for 2022-2023, $19.1 billion for 2023-2024, and $13.3 billion for 2024-2025, totaling a $58 billion shortfall over the next three years.