California Legislature facing $54.3-billion deficit chooses to increase spending

The California Legislature, facing a $54.3 billion budget deficit in the next fiscal year beginning July 1, has chosen to increase spending in expectation of a federal bailout. The nonpartisan Legislative Analyst Office (LAO) on May 7 shocked California's Democrat leadership, which holds veto-proof control of state finances, that despite federal disaster funding of $26.625 billion from the CARES Act and a $10-billion loan to pay for unemployment claims, the state faced an $85-billion deficit over the next 14 months. As a result of the COVID-19 coronavirus lockdown, California has suffered a huge economic decline with unemployment rising to 15.5 percent and tax revenue plunging.  The impact is so severe that the County of Los Angeles is forecasting sales tax collection for the current year ending on June 30 will decline by $2 billion, or 34 percent. The state's Department of Finance has been predicting a sharp economic...(Read Full Post)
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