(The Center Square) – California Gov. Gavin Newsom’s May budget proposal still falls $7 billion short of a balanced budget for fiscal year 2024-2025, according to the state-funded, non-partisan Legislative Analyst’s Office. This new budget, called the May Revision, is a marked improvement from earlier assessments from the LAO that said the 2024-2025 deficit could be as high as $73 billion.
“The May Revision puts the state on better fiscal footing and makes substantial progress toward structural balance. By pulling back substantially on one-time and temporary spending, as well as making some ongoing reductions, the Governor’s May Revision shrinks the state’s projected deficits from around $30 billion (our December 2023 estimates) to an average of less than $10 billion (our estimates today),” wrote the LAO in its multi-year budget report released today.
