The California Budget Bust Arrives

null By The Editorial BoardDec. 8, 2023 6:29 pm ETThe state Capitol in Sacramento, Calif. Photo: Rich Pedroncelli/Associated PressMuch like California’s climate cycle of storms and drought, the state’s progressive tax code yields revenue booms and busts. Now the bust is coming. After a $100 billion budget surplus two years ago, the Golden State is now staring at a $68 billion shortfall because the gusher of tax revenue from soaking the rich has dried up.The state Legislative Analyst’s Office projected on Thursday a $68 billion budget gap through the next fiscal year and $155 billion in cumulative deficits over the next four years. For comparison, Florida’s entire general fund budget was $46.1 billion this year.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8Sponsored OffersTurboTax: Save up to $15 with TurboTax coupon 2023The Motley Fool: Epic Bundle - 3x Expert Stock RecommendationsH&R Block Tax: Get 20% off H&R Block tax software produ

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Opinion Dec 9, 2023 Add to Reading List

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The Editorial Board

Dec. 8, 2023 6:29 pm ET

The state Capitol in Sacramento, Calif. Photo: Rich Pedroncelli/Associated Press

Much like California’s climate cycle of storms and drought, the state’s progressive tax code yields revenue booms and busts. Now the bust is coming. After a $100 billion budget surplus two years ago, the Golden State is now staring at a $68 billion shortfall because the gusher of tax revenue from soaking the rich has dried up.

The state Legislative Analyst’s Office projected on Thursday a $68 billion budget gap through the next fiscal year and $155 billion in cumulative deficits over the next four years. For comparison, Florida’s entire general fund budget was $46.1 billion this year.