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LAO: State faces $25 billion budget hole in 2023-24, and more woe later
The California State Capitol in Sacramento. (Photo: Always Wanderlust, via Shutterstock)Under our outlook, the Legislature would face a budget problem of $25 billion in 2023‑24. (A budget problem—also called a deficit—occurs when resources for the upcoming fiscal year are insufficient to cover the costs of currently authorized services.) The budget problem is mainly attributable to lower revenue estimates, which are lower than budget act projections from 2021‑22 through 2023‑24 by $41 billion.