The cost of economic shutdown: CA goes from $21B surplus to $53.4B budget shortfall

Taxpayers (whether local or federal) are going to have to cough up more money due to bureaucrats across the country completely shutting down economies.

My state announced yesterday that revenue collection for the month of April fell by $502.5 million. You know almost every local and state agency will be facing drastic shortages. But remember: #WeAreAllInThisTogether.

KTLA reports that Gov. Newsom announced that California will have a budget shortfall of $53.4 billion due to shutting down their state in late March. Just last year, they (supposedly) had a budget surplus of $21 billion.

Also, more than 4 million people have filed for unemployment in California as a result of the Wuhan virus shutdown.

You know the pain is going to come for taxpayer$: “Phil Ting, chairman of the budget committee in the state Assembly, said he doesn’t think the state can cut enough spending to fill the budget hole and “may have to look at some additional revenue.”

Read the whole story here.

DCG

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Grace
Grace
25 days ago

The reckoning of CA will come soon and swift. It will be devistating. The majority of folks who work in any capacity that is not a medium to small sized independent business (who have already been suffering) don’t see the reckoning coming. Public employees, government employees, utility employees, those in education- particularly higher education are clueless. They think they are insulated, protected, and that their future pensions are safe. It’s just another form of derangement syndrome. I see it all the time.

Joseph Magil
Joseph Magil
25 days ago
Reply to  Grace

But Grace, #WeAreAllInThisTogether! Have faith in the hashtag! The hashtag will save us!

Michael Garrison
Michael Garrison
25 days ago

I truly doubt that ANY STATE is going broke. It came out a few years ago where the States were charging exorbitant taxes and making a killing on investments.

Grace
Grace
25 days ago

I don’t know about other states but CalPers pensions are heavily invested in China. It’s just a matter of time before POOF! The whole house of cards implodes.

Joseph Magil
Joseph Magil
25 days ago

I’m glad to see that the destruction of California is going according to plan and on schedule.

Dr. Eowyn
Admin
25 days ago

Everyone is financially devastated by the lockdown. I just don’t know how Gov. Newsom and the 8 Bay Area counties (who are sticking to the lockdown despite Newsom’s Stage 2 relaxation) think they can recover fiscally because no amount of tax increases can eliminate a budget shortfall of $53.4 billion.

Boomp
Boomp
24 days ago

With millions of lost jobs, who’s going to bear the burden of increased taxes? If you have any income in CA, YOU will bear the burden. And even before this hoax pandemic people were leaving CA in droves. The communist Newsome will be crawling on hand and knees to Trump for a bailout. I’m wondering why I see no enforcement issues with social distancing of the homeless? Speaking of the homeless, CA has done next to nothing about the problem over the past few decades. Now Newsome’s answer to his state’s own incompetence is to confiscate private property to house… Read more »

CalGirl
CalGirl
24 days ago
Reply to  Boomp

Sad and suffering in ‘CA…..bound to suffer even more after this virus episode……And pay more, probably all we’ve got…to get out of here eventually.

txfella
txfella
22 days ago

Californeeeya never had a surplus……