Earlier this week the Legislative Analyst’s Office (LAO) issued its annual Fiscal Outlook. This year’s edition is the gloomiest I’ve read during an economic expansion:
“2026-27 Budget Problem Now Larger Than Anticipated.”
“Starting in 2027-28, we estimate structural deficits to grow to about $35 billion annually due to spending growth continuing to outstrip revenue growth.”
“Budget Position Is Weak.”
“The state has used most of its budget resiliency tools to address prior deficits.”
“The Legislature will face a fourth consecutive year of budget problems—all during a period of overall revenue growth.”
“California’s budget is undeniably less prepared for downturns.”
I told you so, but I’m a broken record. This madness will not stop until there are political forces greater in strength than the political forces marshaled by government unions and others that feed off ever-more government spending.
