LAO says recession likely, predicts lower revenue and need for more cuts.
Gavin Newsom (D-Fantasyland) got a reality check from the Legislative Analyst on Friday, when the nonpartisan office called for greater spending cuts and disputed the Governor’s contention that the state won’t face a recession in the coming years.
The LAO’s report describes a “heightened risk of recession” and urges the Legislature to “plan for a larger budget problem by identifying more spending reductions.”
Meanwhile, economists surveyed by the Wall Street Journal say there’s a 61% chance of the economy tipping into recession within the next year.
“If the governor and legislative Democrats don’t accept the reality that the economy is in trouble, middle-class Californians will pay the price for their fiscal recklessness.” – Assembly Republican Leader James Gallagher (Yuba City).