Sacramento– Today, Assembly Republican Whip, Devon J. Mathis (R-Porterville), issued the following statement regarding the latest report released by the Legislative Analyst’s Office (LAO). The report forecasts the state’s fiscal outlook for the 2023-24 budget cycle.
“The LAO’s prediction of a $25 billion deficit is extremely troubling,” said Mathis. “Each year, California Progressives boast new levels of wasteful spending, diminishing our ability to save for economic downturns as well as adequately fund the necessities of life. Our need for addressing shortfalls in critical infrastructure spending has gone unmet, and often outright ignored.”
As found within the report, the Legislature would face a budget problem of $25 billion in 2023-24. (A budget problem—also called a deficit—occurs when resources for the upcoming fiscal year are insufficient to cover the costs of currently authorized services.) The budget problem is mainly attributable to lower revenue estimates, which are lower than budget act projections from 2021-22 through 2023-24 by $41 billion.
“As we rapidly approach the rollout of the Governor’s January Budget, I encourage him, along with all of my colleagues in the Legislature, to prioritize essentials such as water and food production,” said Mathis. “
The LAO provided suggestions to the Legislature within the report, including recommendations to pause, delay, or reassess aspects of the 2022-2023 budget.
