Calif. Budget Weak, Despite $11B AI Boom
Big Tech is bringing big money to California with a surge in artificial intelligence stock prices boosting the state’s tax collections by about $11 billion, according to a state Legislative Analyst’s Office report released Wednesday.
That won’t be enough to stamp out California’s deficit. The state’s higher constitutional spending requirements, increased job losses, longer unemployment spells, and other factors mean the deficit is set to swell to about $18 billion next fiscal year.
“Quite frankly, the budget condition right now has become relatively weak,” Legislative Analyst Gabriel Petek said.
It also leaves California ...