(FOX40.COM) \u2014 California is projected to face a multi-billion-dollar deficit next year. It\u2019s one of the top issues lawmakers are expected to address when they return to Sacramento from their winter recess.<\/p>\n
The Legislative Analyst\u2019s Office has released a report projecting the state will face an $18 billion deficit in the coming fiscal year and an annual $35 billion deficit each year after that through the end of the decade.<\/p>\n
The budget is one of the most important parts of government because it determines how much California spends on key programs \u2014 everything from education to fire prevention to water storage.<\/p>\n
California Legislative Analyst Gabe Petek said state revenues are coming in higher than anticipated, but he also stressed the state is spending more than it\u2019s taking in.<\/p>\n
His recommendation to state leaders is to reduce the level of ongoing spending or increase the level of ongoing revenues.<\/p>\n
Lawmakers will return to the state Capitol in January and begin hearings about how best to address the issue. Around the same time, Gov. Gavin Newsom will unveil his preliminary spending plan for the coming year.<\/p>\n
\u201cLeaders from both sides of the aisle acknowledge the state\u2019s budget situation is not in good shape,\u201d Petek said. \u201cBoth sides stress difficult decisions lie ahead all as the blame game has already begun.\u201d<\/p>\n
Assembly Speaker Robert Rivas said the Trump administration\u2019s policies are hurting California\u2019s coffers.<\/p>\n
\u201cTrump\u2019s cuts and tariffs are squeezing California\u2019s budget even harder,\u201d Rivas said. \u201c\u2026We must invest limited dollars on sustainable, vital essentials \u2014 health care, food aid, housing, [and] education.\u201d<\/p>\n
GOP State Senator Tony Strickland disagreed with Rivas\u2019s assessment.<\/p>\n
\u201cOnly in politics can you blame someone else for a job that you don\u2019t do well,\u201d Strickland said. \u201cCalifornia doesn\u2019t have a revenue problem. It\u2019s a wasteful spending problem. We keep spending more than we take in. That\u2019s just a basic math issue.\u201d<\/p>\n
The California Department of Finance says Newsom is working on the budget and will finalize his proposed spending priorities in the coming weeks.<\/p>\n
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