{"id":128331,"date":"2024-11-21T07:34:30","date_gmt":"2024-11-21T00:34:30","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=128331"},"modified":"2024-11-21T07:34:30","modified_gmt":"2024-11-21T00:34:30","slug":"california-has-no-capacity-for-new-spending-top-state-analyst-says","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=128331","title":{"rendered":"California has no capacity for new spending, top state analyst says"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<p>\n\t\t\t\t\tThe California Legislative Analyst&#8217;s Office on Wednesday released the first look at the state&#8217;s financial picture, indicating lawmakers and the governor face yet another challenging year as they prepare to put together the state&#8217;s spending plan next year. Despite surging state revenues so far bringing in $7 billion more than expected this year, Legislative Analyst Gabe Petek said California may face a $2 billion budget shortfall in the upcoming budget year for 2025-2026. Petek said the state has no capacity for new spending commitments.&#8221;There are some particular uncertainties with the number and things could shift in the coming months,&#8221; Petek told reporters, but noted California is already strapped with growing spending commitments plus the uncertainty that comes along with the state&#8217;s revenue relying heavily on its highest earners. The office acknowledged the state&#8217;s financial situation is &#8220;on shaky ground,&#8221; noting the boom in revenue is largely attributed to major tech companies like NVIDIA, Apple, Google and Meta performing well. Analysts said a stock market slump could have a significant impact on the state&#8217;s budget situation.  Petek said the state&#8217;s abnormal growth in spending could also contribute to large budget deficits in the future, with shortfalls projected between $20 billion to $30 billion in the coming years. Petek noted California has several spending commitments related to the expansion of some state programs, plus another $8 billion in higher costs associated with propositions that passed in the election.  Gov. Gavin Newsom has already floated a handful of new spending proposals including a boost to the state&#8217;s Hollywood tax credit, plus efforts to prepare for lawsuits against President-elect Donald Trump&#8217;s incoming administration and the need for a possible disaster relief fund. Petek confirmed that at the moment state lawmakers and the governor would need to either make cuts to other programs, tap into savings, or create a new tax to generate more money for those proposals. Petek could not say on Thursday how the Trump administration might impact California&#8217;s financial situation. He said the report released Thursday is based on current facts, evidence and data. &#8220;We&#8217;re not trying to speculate here, we&#8217;re trying to give a clear picture of the state&#8217;s financial position,&#8221; Petek said. &#8220;We need to show restraint with this year\u2019s budget,&#8221; said Assembly Speaker Robert Rivas in a statement.  &#8220;California must be prepared for any challenges, including ones from Washington. It\u2019s not a moment for expanding programs, but for protecting and preserving services that truly benefit all Californians.&#8221;The update comes after lawmakers and the governor have spent back-to-back years closing budget deficits in the tens of billions of dollars. Last year, they made numerous cuts to several programs while tapping into the state&#8217;s reserves. The Legislative Analyst&#8217;s Office said there is about $11 billion available in the state&#8217;s savings accounts.  See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter\n\t\t\t\t<\/p>\n<div>\n\t\t\t\t\t<strong class=\"dateline\">SACRAMENTO, Calif. \u2014<\/strong> \t\t\t\t\t\t\t\t\t\t\t<\/p>\n<p>The California Legislative Analyst&#8217;s Office on Wednesday released <a href=\"https:\/\/lao.ca.gov\/Publications\/Report\/4939\" target=\"_blank\" rel=\"nofollow noopener\">the first look at the state&#8217;s financial picture<\/a>, indicating lawmakers and the governor face yet another challenging year as they prepare to put together the state&#8217;s spending plan next year. <\/p>\n<p>Despite surging state revenues so far bringing in $7 billion more than expected this year, Legislative Analyst Gabe Petek said California may face a $2 billion budget shortfall in the upcoming budget year for 2025-2026. Petek said the state has no capacity for new spending commitments.<\/p>\n<p><!-- article\/blocks\/side-floater --><\/p>\n<p><!-- article\/blocks\/side-floater --><\/p>\n<p>&#8220;There are some particular uncertainties with the number and things could shift in the coming months,&#8221; Petek told reporters, but noted California is already strapped with growing spending commitments plus the uncertainty that comes along with the state&#8217;s revenue relying heavily on its highest earners. <\/p>\n<p>The office acknowledged the state&#8217;s financial situation is &#8220;on shaky ground,&#8221; noting the boom in revenue is largely attributed to major tech companies like NVIDIA, Apple, Google and Meta performing well. Analysts said a stock market slump could have a significant impact on the state&#8217;s budget situation. <\/p>\n<p>\n\tThis content is imported from Twitter.<br \/>\n\tYou may be able to find the same content in another format, or you may be able to find more information, at their web site.\n<\/p>\n<div class=\"embed embed-resize embed-twitter embed-center lazyload-in-view\">\n<div class=\"embed-inner\">\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">JUST IN: California&#8217;s <a href=\"https:\/\/twitter.com\/LAO_CA?ref_src=twsrc^tfw\" rel=\"nofollow\">@LAO_CA<\/a> releases first look at the state budget. Says while revenue looks good, there could be a slight deficit next year with &#8220;No capacity&#8221; for new spending commitments. <\/p>\n<p>&#8220;Without broader economic improvements, recent gains are on shaky ground&#8221;\u2026<\/p>\n<p>\u2014 Ashley Zavala (@ZavalaA) <a href=\"https:\/\/twitter.com\/ZavalaA\/status\/1859304401703473657?ref_src=twsrc^tfw\" rel=\"nofollow\">November 20, 2024<\/a><\/p><\/blockquote><\/div>\n<\/div>\n<p>Petek said the state&#8217;s abnormal growth in spending could also contribute to large budget deficits in the future, with shortfalls projected between $20 billion to $30 billion in the coming years. <\/p>\n<p>Petek noted California has several spending commitments related to the expansion of some state programs, plus another $8 billion in <a href=\"https:\/\/www.kcra.com\/article\/california-braces-post-election-budget-uncertainty\/62888103\" target=\"_blank\" rel=\"noopener\">higher costs associated with propositions that passed in the election. <\/a> <\/p>\n<p>Gov. Gavin Newsom has already floated a handful of new spending proposals including a boost to the state&#8217;s Hollywood tax credit, plus efforts to prepare for lawsuits against President-elect Donald Trump&#8217;s incoming administration and the need for a possible disaster relief fund. <\/p>\n<p>Petek confirmed that at the moment state lawmakers and the governor would need to either make cuts to other programs, tap into savings, or create a new tax to generate more money for those proposals. <\/p>\n<p>Petek could not say on Thursday how the Trump administration might impact California&#8217;s financial situation. He said the report released Thursday is based on current facts, evidence and data. <\/p>\n<p>&#8220;We&#8217;re not trying to speculate here, we&#8217;re trying to give a clear picture of the state&#8217;s financial position,&#8221; Petek said. <\/p>\n<p>&#8220;We need to show restraint with this year\u2019s budget,&#8221; said Assembly Speaker Robert Rivas in a statement.  &#8220;California must be prepared for any challenges, including ones from Washington. It\u2019s not a moment for expanding programs, but for protecting and preserving services that truly benefit all Californians.&#8221;<\/p>\n<p>\n\tThis content is imported from Twitter.<br \/>\n\tYou may be able to find the same content in another format, or you may be able to find more information, at their web site.\n<\/p>\n<p>The update comes after lawmakers and the governor have spent back-to-back years closing budget deficits in the tens of billions of dollars. <\/p>\n<p>Last year, they made numerous cuts to several programs while tapping into the state&#8217;s reserves. <\/p>\n<p>The Legislative Analyst&#8217;s Office said there is about $11 billion available in the state&#8217;s savings accounts.  <\/p>\n<p><a href=\"https:\/\/www.kcra.com\/\"><strong><em>See more coverage of top California stories here<\/em><\/strong><\/a><em> | <\/em><a href=\"https:\/\/www.kcra.com\/article\/get-kcra-news-on-the-go-download\/44039145\"><strong><em>Download our app<\/em><\/strong><\/a><em> | <\/em><a href=\"https:\/\/www.kcra.com\/subscribe\"><strong><em>Subscribe to our morning newsletter<\/em><\/strong><\/a><\/p>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.kcra.com\/article\/california-lao-budget-report\/62966421\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The California Legislative Analyst&#8217;s Office on Wednesday released the first look at the state&#8217;s financial picture, indicating lawmakers and the governor face yet another challenging year as they prepare to &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=128331\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8629],"tags":[],"class_list":["post-128331","post","type-post","status-publish","format-standard","hentry","category-u-s","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/128331","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=128331"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/128331\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=128331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=128331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=128331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}