Support for LAist comes from
We Explain L.A.
Stay Connected

Share This


California's Budget Deficit Is Now Higher Than It Was In The Great Recession

In this file photo, Gov. Gavin Newsom presents the 2020-21 state budget at a press conference at the California Capitol on Jan. 10, 2020. (Anne Wernikoff for CalMatters)
Stories like these are only possible with your help!
You have the power to keep local news strong for the coming months. Your financial support today keeps our reporters ready to meet the needs of our city. Thank you for investing in your community.

The figures are grim: 18% unemployment rate for the year, 21% drop in new housing permits and nearly 9% decline in California personal income.

State finance officials just announced a $54.3 billion deficit — higher than the deficit during the Great Recession and obliterating the state's once-healthy reserves.

What does this mean for California? A financial tsunami and cuts to schools, health care and safety-net programs, as state and local governments turn to the federal government for additional stimulus support.


Support for LAist comes from

Our news is free on LAist. To make sure you get our coverage: Sign up for our daily coronavirus newsletter. To support our non-profit public service journalism: Donate Now.