California Faces Budget Shortfall That Could Top $35 Billion
- Fiscal analyst warns of recession that would wipe out surplus
- As many as 15% of workers have lost their jobs, claims show
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California is likely to blow through its record $17 billion budget surplus and face deficits of more than twice as much because of the severe recession expected from the coronavirus pandemic, the state’s nonpartisan fiscal analyst said.
Unemployment claims show that as many as 15% of California workers have lost their jobs, Legislative Analyst Gabe Petek told lawmakers during a senate hearing Thursday. Those numbers suggest the state is already in a recession that could severally crimp tax revenue, he said.