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D1 State Senator: Chronic Deficits Loom Despite Growth in Revenue

Office of Senator Dahle,

It was an exciting week back at work in the Capitolโ€š with four different Senate committees meeting to consider โ€œtwo-year billsโ€ โ€“ legislation that did not pass last year but whose authors are continuing to work to pass them. The Senate Appropriations Committee will take up several dozen of these bills next weekโ€š as they have a brief window in January to pass out of the Senate to be considered this year or be dead for the session. 

Meanwhileโ€š the Legislature is digesting the governorโ€™s proposed budget for the coming yearโ€š which was released late last week. There are positives and negatives in specific spending proposals โ€“ but the most important thing to know is that the governorโ€™s approach would saddle the state with chronicโ€š multibillion-dollar deficits in the years to comeโ€š after he leaves office. 

No forecast of the future economy will ever be perfectโ€š but the Legislative Analystโ€™s Officeโ€š in its review of the budgetโ€š points out the state has still not adjusted its budget to fit its means since the disruption of the COVID-19 pandemic. Tax revenue has been risingโ€š but spending has been rising even more. One-time fixes have not addressed the chronic over-spendingโ€š and when an economic downturn comes โ€“ which is inevitable sooner or later โ€“ it will hit the state that much harder. 

California already taxes its residents heavilyโ€š and more taxes are not the solution. The state needs to get serious about what it can afford. When a crisis hitsโ€š it will be too late. 

โ€“ Senator Megan Dahle


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