Economy

California budget shortfall nears $32 billion

Winter storms and a shaky stock market contributed to a $9 billion increase in anticipated shortfalls.
California Gov. Gavin Newsom at a press conference Tuesday, April 25, 2023, in Corcoran, Calif. (AP Photo/Marcio Jose Sanchez)

California faces a budget shortfall of nearly $32 billion, up substantially from estimates state officials laid out in January and exacerbated by a shaky stock market and a series of devastating winter storms, Gov. Gavin Newsom (D) said Friday.

Laying out revisions to his initial budget proposal, Newsom said the impacts of the shortfall would be mitigated by spending decisions made over the last several years, when the state spent historic surpluses on one-time projects and paying down debt rather than ongoing programs.

Stay informed
Subscribe to keep reading.

Sign up today to get the latest state new at your fingertips and in your inbox.