California Gap May Rise to $25.4 Billion, Report Says
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California, the most populous U.S. state, may face a $25.4 billion budget deficit over the next 19 months, the fourth time in as many years the state has confronted a spending gap, its fiscal analyst said.
The deficit includes $6.1 billion in the current fiscal year, which ends June 30, and about $19 billion the next year, according to a report released today by the nonpartisan Legislative Analyst’s Office. Governor-elect Jerry Brown, who will be sworn in Jan. 3, must propose a plan to erase the deficit by Jan. 10. The report warned against “patching over” shortfalls with temporary fixes.