California’s Budget Bust-Up

“California officials blame the projected $54 billion shortfall on the coronavirus shutdown, but steep deficits always loomed in the next recession. Last year, the Public Policy Institute of California estimated that, even in a moderate downturn, the state would face revenue shortfalls averaging more than $22 billion a year for the next four years—totaling more than $90 billion. For a severe recession—as we may now be facing—the study projected revenue losses of $170 billion stretching over five years.”  Steven Malanga, “California’s Budget Bust-Up,” City Journal, 5/19/2020.