All articles tagged with #fiscal shortfall
California's governor Gavin Newsom projects a $9 billion revenue increase for 2026-27, relying on the AI-driven economy, while forecasting a modest $2.9 billion shortfall for the upcoming year, with concerns about the sustainability of the AI boom and long-term fiscal challenges including reduced housing and homelessness funding.
Social Security benefits are projected to face up to 23% cuts in seven years, partly due to President Trump's tax law which reduces taxable income and accelerates the program's financial shortfall, compounded by demographic shifts like aging baby boomers, increased longevity, and lower birth rates, making urgent reform necessary.
The Social Security program's trust fund is projected to be depleted by 2033, potentially leading to a 23% cut in benefits if Congress does not act, which could significantly increase senior poverty rates; urgent legislative measures are needed to address the funding shortfall.
A report warns that the Social Security trust fund will be depleted in eight years, leading to automatic benefit cuts of 23% unless Congress intervenes by raising taxes or cutting benefits, amid demographic shifts and increased early withdrawals.
D.C. Mayor Muriel Bowser announced a budget plan to offset a $1.1 billion shortfall caused by Congress's budget cuts, using a 2009 federal law to increase spending and implementing temporary freezes and cuts, while urging Congress to restore budget autonomy amid ongoing federal funding challenges.
Lawmakers in Colorado are facing concerns over the state's budget as they convene for a special session on property taxes. The state's Joint Budget Committee was presented with an independent assessment of Governor Jared Polis' proposed spending plan, revealing a potential $44 million budget shortfall this year and an additional $330 million shortfall next year. Lawmakers are considering using $200 million from the general fund to offset property tax cuts, but this could further strain the budget. Democrats oppose tapping into state reserves, while Republicans support it. The budget concerns come as federal pandemic relief funds dry up and lawmakers try to fulfill their promise of fully funding Colorado's school finance obligations.