BAKERSFIELD, Calif (KBAK/KBFX) A new report from the Legislative Analyst’s Office projects that California will face a $18 billion budget deficit for the 2026-27 fiscal year, marking the fourth consecutive year of deficits under Gov. Gavin Newsom.
This figure is about $5 billion more than anticipated by the governor’s administration in June.
California faces $18 billion budget deficit, report says (KBAK)
Michael Turnipseed, executive director of the Kern County Taxpayers Association, attributed the deficit to federal spending cuts tied to the Big Beautiful Bill, ongoing economic uncertainty, and a continued exodus of taxpayers from the state.
“Those are the three real causes, and they need to figure out how to keep major people here who pay lots of money in taxes here,” Turnipseed said.
The budget could increase up to $38 billion by the 2027-28 fiscal year, he added.
California faces $18 billion budget deficit, report says (KBAK)
Turnipseed noted that balancing the budget without additional revenues could lead to increased taxes and fees, which may drive more people and businesses out of the state.
Legislative Republicans blame the deficit on poor spending decisions.
California faces $18 billion budget deficit, report says (KBAK)
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Sen. Melissa Hurtado told Eyewitness News that raising taxes is not the solution, stating, “Taxes are increasingly becoming more, so of a burden than ever before because of the cost of living. I think that’s something that I know my team and I are working on. Particularly and specifically in property taxes.”