California analyst forecasts one-time $26 billion windfall

California

FILE – In this May 26, 2020, file photo, members of the state Assembly meet to discuss the state budget at the Capitol in Sacramento, Calif. California is expected to have a one-time $26 billion windfall in its next budget year, according to the state’s nonpartisan legislative analyst, who said Wednesday, Nov. 18, 2020, that the economic consequences of the coronavirus pandemic have not been as severe as anticipated. (AP Photo/Rich Pedroncelli, Pool, File)

SACRAMENTO, Calif. (AP) — California’s nonpartisan legislative analyst says the state is expected to have a surprise one-time $26 billion windfall in the next budget year.

The analyst says the economic consequences of the coronavirus pandemic have not been as severe as anticipated.

But he warned Wednesday that the eye-popping windfall is solely the result of the state overestimating what was expected to be a $54 billion budget deficit.

He says the state’s spending commitments will still outweigh its projected revenue going forward.

That will result in a small operating deficit in the next budget that will grow to $17 billion by 2025.

For local, national, and breaking news, and to get weather alerts, download our FREE mobile app from the Apple App Store or the Google Play Store.

Copyright 2020 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

CBS47 On Your Side

Do you have a problem that you need help solving? Contact CBS47 and let us be On Your Side.

Phone: 559-761-0383
Email: OnYourSide@cbsfresno.com