{"id":2118899,"date":"2023-12-07T16:44:02","date_gmt":"2023-12-07T21:44:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/california-faces-68-billion-deficit-in-2024\/"},"modified":"2023-12-07T16:47:29","modified_gmt":"2023-12-07T21:47:29","slug":"california-faces-68-billion-deficit-in-2024","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/california-faces-68-billion-deficit-in-2024\/","title":{"rendered":"California&#8217;s deficit projected at $68B by 2024"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcalifornia-faces-68-billion-deficit-in-2024%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2118899&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<h2>Unemployment up, \u200cincomes down: State budget report gives grim outlook for Newsom&#8217;s California<\/h2>\n<figure><figcaption>California \u200dGov. Gavin Newsom (Justin Sullivan\/Getty Images)<\/figcaption><\/figure>\n<\/blockquote>\n<div>\n<p>California governor Gavin Newsom (D.) faces a $68 billion deficit in 2024, more than double this year\u2019s $32 billion shortfall, the state\u2063 budget analyst <a href=\"https:\/\/lao.ca.gov\/Publications\/Report\/4819#California_Entered_a_Downturn_Last_Year\" target=\"_blank\" rel=\"noopener\">reported<\/a> Thursday.<\/p>\n<p>The shortfall stems from the state&#8217;s \u20632022 economic downturn and the accompanying declines in revenue even as California leaders maintained their high levels of spending with a nearly \u200d$311 billion budget.<\/p>\n<p>California entered an economic downturn \u200cin 2022 as unemployment\u2063 jumped\u200d to 4.8 percent\u2014higher than the national\u2062 rate of 3.9 percent\u2014and Californians\u2019 inflation-adjusted \u2062incomes declined for five straight quarters, the report says. Meanwhile, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mortgage-rates-hit-8-percent-crushing-loan-demand\/\" title=\"Loan demand crushed as mortgage rates soar to 8%.\">high borrowing costs<\/a> have slowed home sales and\u200d investments into California\u2019s profitable tech industry while deterring businesses from expanding or hiring more workers.<\/p>\n<p>The grim outlook \u2063is the latest sign of domestic trouble for Newsom, who has presided over a three-year population exodus that\u200b included <a href=\"https:\/\/ktla.com\/news\/california\/california-lost-more-than-300-million-in-tax-revenue-from-wealthy-residents-moving-study\/\" target=\"_blank\" rel=\"noopener\" data-stringify-link=\"https:\/\/ktla.com\/news\/california\/california-lost-more-than-300-million-in-tax-revenue-from-wealthy-residents-moving-study\/\" data-sk=\"tooltip_parent\">wealthy taxpayers<\/a> while\u200c increasing spending\u2063 by more than\u200d 60 percent. It comes as the governor\u2019s poll \u2064numbers have <a href=\"https:\/\/freebeacon.com\/latest-news\/potential-biden-successor-gavin-newsom-at-all-time-low-approval-in-california-poll\/\" target=\"_blank\" rel=\"noopener\">tanked in his state<\/a>, where \u200bthe majority of voters <a href=\"https:\/\/www.ppic.org\/?show-pdf=true&#038;docraptor=true&#038;url=https%3A%2F%2Fwww.ppic.org%2Fpublication%2Fppic-statewide-survey-californians-and-their-government-september-2023%2F\" target=\"_blank\" rel=\"noopener\">worry about<\/a> the economy, jobs, and inflation while Newsom <a href=\"https:\/\/freebeacon.com\/elections\/he-would-absolutely-jump-in-the-race-gavin-newsom-positions-himself-for-presidential-run\/\" target=\"_blank\" rel=\"noopener\">builds his national profile<\/a> ahead \u200bof a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/counting-down-the-worst-moments-of-the-medias-love-affair-with-michael-avenatti\/\" title=\"Counting Down The Worst Moments Of The Media\u2019s Love Affair With Michael Avenatti\">potential presidential campaign<\/a>.<\/p>\n<p>Republican assemblyman Vince Fong, who \u2063serves as vice chair for the state assembly\u2019s budget committee, said Thursday\u2019s \u2063report brought more &#8220;alarm\u200d bells.&#8221;<\/p>\n<p>&#8220;I have said for years, a slowing California economy coupled with unsustainable\u200d spending is a recipe for fiscal disaster,&#8221; Fong said. \u2062&#8221;No more gimmicks; we must take action now to get our fiscal house in order.&#8221;<\/p>\n<p>A spokesman \u200dfor Newsom did not respond to a request for comment.<\/p>\n<h3>The analysis warns that the state\u2019s economic problems could drag into next year.<\/h3>\n<p>Californians\u2019 personal income tax payments fell by 25 percent in 2023\u2014similar to declines during the 2008 Great Recession and the dot-com stock market bust in the\u200c 1990s. Sales\u2063 tax revenue stayed \u200bflat even as inflation \u200cdrove prices higher. \u200cAnd $30 billion deficits \u2064are expected to continue for the next three years, according to the report.<\/p>\n<p>Just two years ago, California had a nearly $100 billion budget surplus, which Newsom largely \u2064spent on <a href=\"https:\/\/freebeacon.com\/democrats\/very-volatile-moment-newsom-slashes-budget-after-turning-98-billion-surplus-into-22-5-billion-deficit-in-single-year\/\" target=\"_blank\" rel=\"noopener\">one-off programs<\/a> spanning homelessness, mental health, and climate.<\/p>\n<p>This past year, even as \u2064state analysts warned California could yet \u2063face recession, Newsom and the\u200c Democratic legislature approved nearly $311 billion in spending. They closed last\u2062 year&#8217;s $32 billion shortfall largely through budgetary\u2062 maneuvers that shifted\u2064 expenses to different state funds, deferred other spending, \u2063and borrowed about $6 billion. They cut \u200dexpenditures by \u2064just $8 billion.<\/p>\n<p>Newsom has hiked state spending \u200bconsiderably since taking office in 2019 even \u200das California lost population. \u200bA decade ago, his Democratic predecessor, former governor Jerry Brown, enacted a <a href=\"https:\/\/lao.ca.gov\/reports\/2013\/bud\/spending-plan\/spending-plan-073013.aspx\" target=\"_blank\" rel=\"noopener\">$138 billion<\/a> budget. In 2021, Newsom proposed\u2064 boosting state spending\u200d by\u2063 one-third with a $268 billion budget proposal that the legislature whittled down to <a href=\"https:\/\/ebudget.ca.gov\/budget\/publication\/#\/e\/2021-22\/BudgetDetail\" target=\"_blank\" rel=\"noopener\">$262.6 billion<\/a>. By 2022, when more than 800,000 Californians left the state, spending jumped to nearly <a href=\"https:\/\/ebudget.ca.gov\/budget\/publication\/#\/e\/2022-23\/BudgetDetail\" target=\"_blank\" rel=\"noopener\">$308 billion<\/a>.<\/p>\n<p>While spending\u2062 has grown, quality of life has not. Polls <a href=\"https:\/\/www.ppic.org\/publication\/income-inequality-in-california\/\" target=\"_blank\" rel=\"noopener\">show<\/a> that Californians feel the gap between rich\u2064 and poor\u2064 is growing as cost of living is more than 40 percent \u200dhigher than the national average.<\/p>\n<\/div>\n<p> <\/p>\n<h2> How has the rise in unemployment affected California&#8217;s overall\u200b economic stability?<\/h2>\n<p><span>  \u200d Ue annually \u200buntil at least 2026, according to the report.<\/p>\n<p>The budget report highlights several factors\u200b contributing \u200dto California&#8217;s economic woes. Firstly, the state experienced a significant increase in unemployment, with\u200d the rate climbing to 4.8 percent in 2022, higher \u200dthan\u200d the national average \u2062of 3.9 percent. This rise in unemployment has undoubtedly had\u200d a detrimental impact on the state&#8217;s overall economic stability.<\/p>\n<p>Furthermore, the\u2062 report reveals that Californians&#8217; incomes have been on a continuous decline for five consecutive\u200b quarters, \u200bafter adjusting for inflation. This decrease in real income is a concerning \u2062trend, as it\u200d directly affects individuals&#8217; purchasing power and overall economic confidence. It also \u2062underscores the challenges faced by\u2064 Californians in meeting rising costs of living.<\/p>\n<p>The budget report also highlights the impact of high borrowing \u2063costs on \u2062the housing market, as it \u2063has slowed down home \u2063sales and discouraged investments in the \u200cstate&#8217;s profitable tech industry.\u2064 Additionally, businesses have been deterred\u2063 from \u2062expanding \u2064and \u2062hiring more workers due to\u200b these\u200b high borrowing costs. This combination of factors further \u2063exacerbates\u2063 California&#8217;s economic downturn.<\/p>\n<p>Moreover, the\u200b report sheds \u200blight on the \u200dpopulation exodus California has experienced under Governor Gavin Newsom&#8217;s leadership. Over the past three years, wealthy taxpayers have been leaving the\u2063 state, resulting in a loss of tax\u2063 revenue.\u2062 This exodus, coupled with the state&#8217;s increasing spending, has\u2064 created a significant fiscal strain on California&#8217;s budget.<\/p>\n<p>Given\u2064 these challenges, it is not surprising that Governor Newsom&#8217;s \u2062approval ratings have \u2062plummeted, especially among voters who express concerns about the economy, jobs, and inflation. While Newsom \u2062has been focusing on building his national profile,\u2062 potential presidential\u200c aspirations may divert attention from addressing the pressing issues \u200cfaced by \u200bCalifornians.<\/p>\n<p>The budget report has prompted Republican assemblyman Vince Fong to issue a call to action. Fong emphasizes that the combination of a slowing\u2064 California economy \u200cand unsustainable \u200bspending is a \u2063recipe for fiscal disaster.\u2064 He urges the \u200dstate to take immediate action\u2062 to \u2063rectify these issues and\u200b restore \u200dfiscal stability.<\/p>\n<p>Moving forward, it is imperative for California&#8217;s leaders to prioritize economic recovery and make necessary adjustments to the\u200b state&#8217;s budget. \u2064Concrete measures must\u200c be taken to address the\u2064 unemployment crisis, boost real\u2062 incomes, \u200dattract businesses, and encourage investments. Additionally, ensuring fiscal responsibility and implementing sustainable spending practices should \u200dbe at the forefront of any economic\u2064 recovery plan.<\/p>\n<p>California&#8217;s economic problems are \u200dnot to be\u2062 underestimated, as they have far-reaching consequences\u200c for\u200d the \u200bwell-being of its residents and the\u2063 state&#8217;s \u200doverall \u2062prosperity. It is now incumbent upon \u2064Governor Newsom\u2062 and state\u200b legislators \u2064to \u200d<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/group-that-allegedly-committed-10-armed-robberies-in-30-minutes-caught-on-camera-its-very-shocking\/\" title=\"10 armed robberies in 30 minutes caught on camera by alleged group, shocking.\">find effective solutions<\/a> to\u200d navigate \u2064these challenges and put California&#8217;s economy back on \u2063track. The resilience and determination of California&#8217;s leaders will undoubtedly be \u200btested as they strive\u200d to revive \u200dthe\u200c state&#8217;s economy and provide a brighter future for all Californians.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>California Governor Gavin Newsom is confronted with a bleak future as the state budget analyst reveals a $68 billion deficit in 2024, surpassing this year&#8217;s $32 billion shortfall. The economic downturn in 2022 is the primary cause of this alarming financial situation, with unemployment rising and incomes declining<\/p>\n","protected":false},"author":1604,"featured_media":2118900,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[544],"tags":[],"class_list":["post-2118899","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-free-beacon"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2118899","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1604"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2118899"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2118899\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2118900"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2118899"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2118899"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2118899"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}