California Cities, Counties Bracing for Impact of State’s Record Budget Deficit

Counties rely on state funding for about one-third of their revenue, according to research and analysis nonprofit California Budget and Policy Center. 

The California State Capitol building in Sacramento, Calif., on March 11, 2023. John Fredricks/The Epoch Times

With California facing a $68 billion budget deficit, local governments are preparing to re-evaluate their spending, anticipating funding cuts from state agencies. 

Part of the issue is expected tax revenue was far less than anticipated, which could deepen the deficit to $155 billion by 2025, the state’s Legislative Analyst reported earlier this month.