California Journal of Politics and Policy

The 2023 budgeting cycle in California was much different from the previous year. California’s finances, always topsy-turvy, faced a dramatic reversal of fortune as surplus turned to deficit.  Nonetheless, the state was able to weather the storm and avoid deep spending cuts, thanks to a combination of good economic times in years past and politically expedient decisions by the Governor and Legislature.  However, delayed tax collections and projections for structural deficits, even absent a recession, meant storm clouds were on the horizon as the year drew to a close.  The tough decisions that were sidestepped in 2023 might have to be made in 2024.