Document Type
Article
Publication Date
3-18-2024
Abstract
In this installment of Academic Perspectives on SALT, Shanske and Gamage examine California’s projected budget deficit and possible solutions. California has a large budget deficit that is predicted to last for several years. In this two-part series, we will place California’s situation in context and propose solutions.
The state should use short-term borrowing to cover at least some of the cyclical shortfall. That the real revenue cycle is unlikely to neatly unfold over one traditional fiscal year should not change this conclusion. To that end, we will show how California can operationalize this simple insight despite the impression some may have that it cannot do so as a matter of law. In this article, we will explain how this borrowing might work. In the next article, we will explain why this borrowing should be legally permissible.
Recommended Citation
David Gamage and Darien Shanske,
Coping With California’s Deficit, Part 1: Borrowing and Taxes, 111 State Tax Notes 823
(2024).
Available at: https://scholarship.law.missouri.edu/facpubs/1344