California is facing a $68 billion budget shortfall in 2024 after corporate and income tax revenues were determined to be less than expected. From Spring 2023 to Fall 2023, tax revenue fell $25 billion less than anticipated. Experts on the issue spoke to local media in Los Angeles and stated that these numbers can easily be explained. They said that there are two factors at play, a drop in the stock market due to high-earning Californians having a lot of money invested there. Also, a delay in the tax filing deadline due to the serious natural disaster involving massive flooding may have caused a decline in tax revenue.
An obvious problem with California is the exodus of people. People are still moving to The Golden State in droves, but even more people are moving away. The problem of people leaving California is so bad that moving companies like U-Haul are running out of moving vehicles in the state. And a lot of the people who are moving are big-money earners who can afford to move across the country, which is not a very cheap thing to do. Elon Musk has signaled that he will move Tesla from California to Austin, Texas. Joe Rogan, the biggest podcaster in the world, has already moved to Texas from California. Many other businesses and individuals who contribute large amounts of money to California’s tax base are simply abandoning the state due to bad policies coming from local and state Governments.
SOURCES:
California faces $68 billion budget deficit, analysis says : NPR
California freezes spending as state faces $68 billion deficit | California | thecentersquare.com
California Faces $68 Billion Deficit Amid Steep Revenue Decline – The New York Times
Budget deficit: Legislative analyst projects $68 billion hole- CalMatters
California faces ‘severe revenue decline,’ record $68 billion budget deficit as mass exodus continues
California possibly facing a $68B budget deficit – YouTube
