California's budget crisis is projected to expand more than previously thought and could hit a record deficit of $73 billion, according to a new report from the state's nonpartisan Legislative Analyst's Office (LAO).

The LAO laid out the grim forecast in a Tuesday report that cautions that a $24 billion "erosion in revenues" corresponds to a $15 billion increase in the state's budget problem. Due to this, the budget deficit, which last month was estimated to hit $58 billion, could now go as high as $73 billion.

"The actual increase in the state's budget problem will depend on a number of factors, including formula-driven spending changes, most notably Proposition 98 spending requirements for schools and community colleges," the report said.

H.D. Palmer, the deputy director of California's Department of Finance and Newsom's spokesperson on budget matters, responded to the new LAO report by telling Fox News Digital that their budget shortfall differs from the $38 billion they estimate.

"From now through April, more than $51 billion in income and corporate tax receipts are forecast to come in," Palmer said. "No one can say today with certainty how those numbers may change the budget estimate of a $38 billion shortfall."

"A responsible step would be for the Legislature to act now on the early action budget measures needed for $8 billion in solutions to help close this gap," he added.

The projected bad news comes as Newsom has worked to increase his profile nationwide. It also occurred as California experienced a mass exodus.

California saw its first-ever population decline in 2020 when the state imposed rigid lockdowns during the COVID-19 pandemic. From January 2020 to July 2022, the state lost well over half a million people, with the number of residents leaving surpassing those moving in by almost 700,000.

Sure is a nice state you got there. Shame if something were to happen to it.

Bastion of leftist policy.

I heard the proper way to prevent "erosion in revenues" in a leftist state is to close the border to prevent tax slaves from escaping.

It's really sad to see. I miss Temecula. I miss my son and my friends. I miss the weather and the fishing. I miss watching football at a decent hour.

Too bad it all went to sheit.

I blame this on people who would put avocado on a burger.

Wha...what happened to all that surplus cash they were supposed to have?

Exactly

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You really should move to California. They could use your tax contributions!

2 words... Gavin Newsom.

#1 - he's a giant liar. If his lips are moving, he's lying. Never was a surplus.
#2 - his sheit policies caused this.

The budget surplus should go for reparations.

Although it is hard to put a price on the pain and trauma MACS and HD have experienced.

Nobody knows their sorrow....

**singing**

Nooo-boooody knoooooowsssss, the trouble I've seeeeen.... 🤣

Zakacracky!

What about me? I was born there not transplanted.

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I feel like we need to raise taxes on Delta1.

A sure bet.

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I blame this on people who tell me men can menstruate, and then tell me I’m a science denier.

*shrug*

Well, there's that... 🤣

Sounds like someone needs to be chestfed!