California to Face Budget Shortfall Amid Mass Exodus of Business Owners

The state of California is facing a budget deficit of $25 billion going into 2023, the state’s Legislative Analyst’s Office (LAO) reports.

According to the Daily Caller, the LAO’s Wednesday report claimed that the primary reason for the deficit will be the shortcomings in the state’s tax revenue, which will ultimately be about $41 billion less than originally projected. Corporate tax revenue in the state is expected to drop by about $6 billion from fiscal year 2021-2022 to 2023-2024, and personal income tax revenue has also declined, from $135.9 billion in the prior fiscal year to an estimated $122.6 billion in the coming fiscal year.

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