Sacramento - Assemblymember Phil Ting (D-San Francisco), Chair of the Assembly Budget Committee, released the following statement about California’s latest fiscal outlook from the Legislative Analyst’s Office (LAO):
We’ve known the impacts of COVID-19 to our state budget would be staggering, given the resources needed to respond to the pandemic. Fortunately, California built up its Rainy Day Fund and reduced debt over the last decade in preparation for the unexpected. Such vigilance has allowed the state to quickly address urgent coronavirus needs in real time.
As we begin work on a new budget, the LAO’s analysis is no surprise. While there are slight differences with the Department of Finance over the size of the deficit, either way you slice it, we have a significant shortfall to bridge over the next few weeks. All options will be on the table.
We recognize Californians will need help with economic recovery, but we must also fulfill our duty to balance the budget. Like many households, we now face some tough choices ahead, amid declining state dollars and increasing demand for programs and services. Revenue options and expenditure reductions will be explored at the same time.
The 2020-21 fiscal plan is just the beginning of our adjustment to the state’s new financial reality. But California is resilient, and I am confident we will rebound.
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