By Andrew Sheeler, Lindsey Holden
In a grim sign for the state, California is projected to see a $58 billion shortfall in revenue collection over the course of three fiscal years, from 2022-23 to 2024-25, according to a report released Friday by the nonpartisan Legislative Analyst’s Office.
The LAO said money from postponed tax payments came in far below projection.
“The impact of recent economic weakness and last year’s financial market distress on state revenues has become clearer. The postponed payments came in much weaker than anticipated,” the LAO report read.
The report cited a cooler California economy in part due to higher borrowing costs and reduced investment as a result of actions by the Federal Reserve.
Source: Sacramento Bee