SACRAMENTO, Calif. — New estimates from California Gov. Gavin Newsom's administration predict a staggering budget shortfall of $54.3 billion because of the coronavirus.
The projections released Thursday estimate a deficit nearly three-and-a-half times more than what the state had saved for an economic downturn.
California has been under a mandatory stay-at-home order since March 19. The order closed nonessential businesses and prompted more than 4 million people to file for unemployment benefits.
A year ago, as the economy hummed, California had a $21 billion surplus. Now, there will be dramatically less money to spend on education, social programs and other programs.
Newsom plans to reveal a new budget proposal next week.