California Doom: Staggering $54 Billion Budget Deficit Loom

SACRAMENTO, Calif. (AP) – New estimates from California Gov. Gavin Newsom’s administration predict a staggering budget shortfall of $54.3 billion because of the coronavirus. The projections released Thursday estimate a deficit nearly three-and-a-half times more than what the state had saved for an economic downturn. California has been under a mandatory stay-at-home order since March 19. The order closed nonessential businesses and prompted more than 4 million people to file for unemployment benefits. A year ago, as the economy hummed, California had a $21 billion surplus. Now, there will be dramatically less money to spend on education, social programs and other programs. Newsom plans to reveal a new budget proposal next week.


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