CA cities and schools face large budget gaps, several options

California’s state budget has been sunk into what the fiscal authorities call a “structural deficit”, which means that its revenue cannot be upheld with the expenses imposed by the current legislation.

For several years the governor Gavin News and the legislature have Caught over the chronic precipice between income and output with tricks, Including and outside budget loans and creative accounting, plus immersion in the Rainy Day funds, set aside for emergencies.

These maneuvers simply postpone the day of reading, as the administration and the budget analyzer of the legislative body Gabe Petek Project is an annual multi -land shortage for an indefinite period.

The dilemma of the state has several roots, most notably a misinterpreted prognosis for revenue in 2022, which has led to a conviction that it will have a huge budget surplus and a sharp increase in costs. The administration later tied the $ 165 billion revenue error over four years.

This factor is exacerbated by what Perek called a “slow economy”.

“Outside of government and healthcare, the state has not added a job for a year and a half,” Petel noted in a November Fiscal ReviewS “In the same way, the number of Californians who are unemployed is 25% higher than during the strong labor markets of 2019 and 2022.”

The state government is not just about standing up a chronic budget deficit. The main cities of the state and many schools also feel the pinching of stagnant revenue and inflation, especially with the growing salaries of workers. Add the horrifying wild fires in Los Angeles and the potentially huge reductions in President Donald Trump’s costs and budget gaps can become even wider.

A few days ago, Matt Sabo, the Chief Administrative Officer of Los Angeles, and the city controller Kenneza Jaco Yako warned the City Council that LA is several hundred million dollars that do not cover their budget costs – they do not even take into account the likely effects of fires on revenue and expenses.

“The city faces significant winds,” ” Sabo saidadding “necessary immediate cost reductions”.

“LA, financially, we are in difficulty”, ” Mejja told the Council in a letterS He added: “The city is calculated to overcome $ 300 million above the budget. So when you have less revenue than your budget and have more expenses over your budget – this is a big gap that we need to fill. “

The new mayor of San Francisco Daniel Luri says he wants “Eliminate $ 1 billion for an exceeding” Over the next three years to cover a deficit of $ 876 million in two years. “The era of disposable or ribbon solutions ended,” Luri told other employees after taking office in January.

A number of smaller cities, including SacramentoThey are also engaged in a significant deficit.

Meanwhile, many school districts are also facing major budget gaps due to reduction of recording and chronic absences that reduce state aid on the basis of attendance, in addition to the leakage of federal grants designed to cope with the Covid-19 and the requirements of the Union of Employees to raise the personal increases in the upbringing of the persons to raise personal

The fiscal crisis and management team, a state agency that monitors the school area’s finances, has recently issued a report on School systems in different degrees of fiscal difficultyWith those in Oakland and San Francisco on the list of the most problem.

The agency cites not only recording, it decreases, but also for the loss of federal pandemic care and increasing costs, especially for fire and electricity as factors.

In theory, local employees could seek an increase in taxes as they reflect on ways to balance their budgets. However, voters facing increasing living costs are unlikely to approve of this decision.

Therefore, the options are either to make real cost reductions, which can mean the release of workers and closing schools, or to imitate the knitwear of the state and hopes the problems will be solved.