California’s Budget Deficit Swells to $73 Billion, Says Legislative Analyst Report

The new estimate comes after revenue collections in December and January fell short of projections by $24 billion.

The California State Capitol building in Sacramento, Calif., on April 18, 2022. John Fredricks/The Epoch Times

Weak revenue collections in December and January are impacting California’s finances and increasing its estimated budget deficit to about $73 billion, according to a Feb. 20 report from the state’s nonpartisan Legislative Analyst’s Office.

Receipts failed to meet expectations across the board, as withholding, personal income, and corporate taxes fell short of projections by $24 billion, collectively, contributing to an additional $15 billion shortfall from the office’s earlier estimates of $58 billion, analysts wrote in the report.