The nonpartisan Legislative Analyst’s Office announced this morning that California has a projected $58 billion revenue shortfall through the next fiscal year, a sharp but entirely predictable turnaround from surpluses Governor Gavin Newsom bragged about just last year. This shortfall could result in a significant reduction to education funding and other programs, as economic reality brings legislative Democrats’ overspending and overpromising back down to earth.
California Senate Republicans have long advocated for fiscal discipline, especially when California saw record budget surpluses.
Unfortunately, one-party rule in Sacramento allowed legislative Democrats to spend away, and those surpluses have been replaced with predictable revenue shortfalls.
The Vice Chair of the Senate Budget and Fiscal Review Committee, Senator Roger Niello offers his reaction to the LAO’s announcement:
“Despite all warnings that it was unsustainable, the majority party has increased state spending by $116 billion over the last six years, nearly doubling the general fund budget in that short time. Republicans have cautioned that this level of spending will lead to greater deficits, and it would be more prudent to reduce the level of spending.
“However, California’s tax-and-spend majority has joined this governor in budget decisions that are based on unrealistic revenue estimates and budgeting gimmicks. Hopefully, the majority will see it is time for a more realistic budget strategy, instead of throwing money at a laundry list of projects that sounds nice on the national television debate stage.”