January 9, 2025

After two years of budget deficits, California Gov. Gavin Newsom proposed a $322.5 billion balanced budget. However, his plan would pull from rainy day funds to finance new priorities including tax incentives for the film industry. The state’s fiscal outlook has stabilized due to rising tax collections. While the state faced several years of deficits, it did not increase taxes due to significant savings.

 

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