SACRAMENTO, Calif. (AP) — The coronavirus has had less economic effect on California than state lawmakers had feared.
The result is an anticipated $26 billion windfall for state lawmakers to spend next year.
A report Wednesday by the nonpartisan Legislative Analyst’s Office says the state’s anticipated $54.3 billion budget deficit will be lower. That gives the state some one-time money to spend next year.
But the report warns that California’s recurring spending commitments are still higher than the state’s projected revenue. That gives the state a small operating deficit of $2.6 billion in 2021-22 that could grow to $17 billion by 2024-25.