I'm Sorry, but California Is HOW Deep in the Hole?
California is experiencing a significant revenue boom, with tax revenues increasing over 30% in three years. However, the state is facing a structural deficit that could reach $16.9 billion despite the influx of cash. The reliance on reserves to balance the budget raises concerns about the sustainability of this financial strategy.
- ▪California's tax revenues have increased by more than 30% in the last three years.
- ▪The Legislative Analyst's Office warns of a structural deficit for the upcoming budget years.
- ▪Governor Gavin Newsom's budget proposal relies heavily on withdrawing from the state's rainy day fund.
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I'm Sorry, but California Is HOW Deep in the Hole? Stephen Green | 10:20 AM on May 20, 2026 AP Photo/Damian Dovarganes What do you call a state absolutely flush with cash, with tax revenues booming more than 30% in just three years? If it's California, you call it "Broke."Wait, wut? Advertisement googletag.cmd.push(function () { googletag.display("div-gpt-300x250_3"); //googletag.pubads().refresh([gptAdSlot["div-gpt-300x250_3"]]) }); “I once heard that the job of a budget analyst is to find the gray cloud in every silver lining, so unfortunately, along with the silver linings of revenues, we see quite a bit of gray clouds on the horizon,” Rachel Ehlers, deputy legislative analyst for the Legislative Analyst’s Office (LAO), told California lawmakers on Tuesday.The silver lining is the…
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