California will likely face a $68 billion deficit next fiscal year due to sharp declines in income tax revenue, the state’s budget adviser said, making it the second consecutive year in the red and potentially leading to cuts to key safety net programs. be.
The projected deficit is more than double last year’s shortfall and the largest in state history, and comes after an “unprecedented” downward revision to estimated tax revenues, the state’s Office of Legislative Analysis said. report It was released on Thursday. The LAO, as it is commonly known, said it expects tax revenues this year to be $26 billion lower than previously expected, resulting in a cumulative deficit of $155 billion through 2028.