California’s fiscal outlook: structural deficits, volatile revenues, and shifting costs. How is the state faring as it continues to face a structural imbalance between ongoing revenues and spending? To what extent do recent efforts to close that gap rely on spending reductions that have yet to be fully realized? How exposed is the state’s fiscal position to stock market volatility and other unusually strong revenue sources? And as federal policies shift more costs and responsibilities to the state, what does that mean for California’s budget and its ability to fund other priorities?
