California’s Tax Revenues Fall Short; Multibillion-Dollar Deficit Widening: Legislative Analyst

The decrease in tax collections is second only to the nearly 29 percent drop in 2002 following the dotcom bust, according to state tax collection data.

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

Tax collections for 2022 in California fell well short of expectations, contributing to a $26 billion budget deficit for fiscal year 2023–2024, which is expected to increase to $58 billion through 2025, according to the state’s nonpartisan Legislative Analyst’s Office.

A “severe revenue decline” of 25 percent from the prior year, the decrease in tax collections is second only to the nearly 29 percent drop in 2002 following the dot-com bust, according to state tax collection data.