BAKERSFIELD, Calif. (KERO) — Even as the world’s fourth-largest economy, California continues to face worsening budget shortfalls.
The state recorded a $27 billion deficit in 2023–24, followed by $55 billion in 2024–25, and now expects another $15 billion deficit this year.
A shortfall once projected at $13 billion for next year has also grown, now estimated to reach nearly $18 billion.
Political analyst Ian Anderson says a mix of lawsuits, administrative changes, and reduced federal support are contributing to the widening gap.
“California and the federal administration do not tend to see eye to eye on a lot of funding streams,” Anderson said. “That means there’s a lot of uncertainty in the reliability of what’s being funded.”
One of the organizations feeling the strain is The Mission at Kern County. Executive director Carlos Baldovino says planning ahead has become increasingly difficult as funding pressures rise.
“Medi-Cal to SNAP—there are already cuts happening at the federal level that will eventually dwindle down to the state side,” Baldovino said.
He explained that potential state-level cuts could reduce the number of residents the mission can house and increase its need for volunteers and donations. The facility is already stretched thin after this year’s 43-day federal government shutdown paused financial aid.
“If it’s going to have an impact in our community if we have to prepare more meals or plan for people becoming displaced we’ve done this before,” Baldovino said. “I’ve been through these situations.”
Statewide, non-education spending is projected to run $6 billion higher than expected across major programs, including pensions, Medi-Cal and CalFresh, corrections, law enforcement, foster care, and health and human services.
Anderson says staying informed is critical for both organizations and individuals.
“You’re impacted no matter what,” he said. “Whether you’re a nonprofit or an individual, you should be aware of this and prepare for potential reductions.”
State officials are expected to release updated budget projections early next year.
Until then, local programs across California are preparing for the possibility of even less support.
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