California facing $24B budget shortfall amid economic uncertainty

California's government is facing an estimated budget deficit of $24 billion this year, a stark reversal from the record-setting surpluses that the state saw in recent years which comes amid ongoing inflation and heightened fears of a looming recession.

California's Legislative Analyst's Office (LAO), which provides state officials with nonpartisan budget forecasts, warned in a report that the state faces a projected $24 billion deficit in 2023-24 mainly because tax revenues are about $41 billion lower than expected.

"Spurred by pandemic‑related federal stimulus, the U.S. economy entered a period of rapid expansion in...