And unlike the Federal government the states can't print their way out of the hole. It's either tax more or spend less.
From the Associated Press, 4 minutes ago:
California’s budget deficit has grown to nearly $32 billion, Gov. Gavin Newsom announced Friday, saying the state’s challenges are partly due to high federal inflation rates and the state’s decision to let some people delay filing their taxes after winter storms.
That’s about $10 billion more than Newsom predicted in January, when he offered his first budget proposal. The deficit is part of Newsom’s overall proposal for a $306 billion budget, by far the largest state budget in the nation.
California is one of the only states to have a shortfall this year. That’s mostly because its progressive tax code relies on wealthy taxpayers whose income is closely tied to the performance of the stock market.
In January, Newsom proposed a number of ideas to cover the deficit, including about $9.6 billion in spending cuts that hit some of the state’s ambitious climate programs and other policy areas. His latest proposal includes roughly another $1 billion in spending reductions. Some of that comes from clawing back unspent money in various programs, including those designed to provide tax refunds and help people with their utility bills....
....MUCH MORE