California is likely to face persistent future budget deficits, according to the state’s Legislative Analyst’s Office (LAO), which flagged concerns to state leaders in recent reports.
The independent government agency recommended that the state Legislature at least adopt the governor’s proposed solutions in addressing long-term structural deficits.
The LAO said that using independent analysis models, it reached conclusions similar to those of the California Department of Finance: Both projected the state’s operating deficits to range from $10 billion to $20 billion over this fiscal year and the next two.
“Both our office and the administration forecast persistent future deficits,” the LAO said in its annual budget outlook report released on May 24. “These shortfalls represent future budget problems that would require additional budget-balancing decisions.”…