SACRAMENTO- Today, Assembly Republican Leader James Gallagher (Yuba City) responded to the latest report released by the Legislative Analyst’s Office (LAO) that forecasts California’s fiscal outlook on the 2023-24 budget, stating that California’s “revenue estimates represent the weakest performance the state has experienced since the Great Recession.”
“Assembly Republicans have been warning that Democratic policies and spending would trigger inflation and recession. Now that has come to pass. It’s time we right the ship,” said Leader Gallagher. “We overtaxed Californians and grew government while ignoring investments in critical infrastructure like new water storage. The LAO report has some good recommendations to get us started on a better path. It’s not too late to focus our spending on the fundamental priorities, save for the rainy day to come, and pursue policies that will grow the economy and lower everyday costs for Californians.”
Last year California Democrats spent a historical budget surplus of $97 billion. This latest LAO report shows that the state will be facing a $25 billion budget shortfall this coming year.
Several of the key takeaways from the LAO’s analysis include recommendations that the Legislature not tap into the rainy day fund yet with a looming recession, and call for a pause, delay, or reassessment in the funding of expanded programs to see if they are working as expected.