$68 Billion Deficit ~ Unprecedented Revenue Shortfall Creates Unique Challenges for California

The 2024‑25 Budget
California’s Fiscal Outlook

Executive Summary

California Faces a $68 Billion Deficit. Largely as a result of a severe revenue decline in 2022‑23, the state faces a serious budget deficit. Specifically, under the state’s current law and policy, we estimate the Legislature will need to solve a budget problem of $68 billion in the upcoming budget process. 

Unprecedented Prior‑Year Revenue Shortfall Creates Unique Challenges. Typically, the budget process does not involve large changes in revenue…