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Chapman Forecast: California’s Economic Decline Continues

Commentary Californians face a difficult economic year in 2024. The state budget deficit will soar to a record $68 billion. Taxes are rising not just from 13.3 percent to 14.4 percent of income for millionaires, but from 9.3 percent to 10.4 percent for the middle class. And prices of goods and services will rise due

Commentary
Californians face a difficult economic year in 2024. The state budget deficit will soar to a record $68 billion. Taxes are rising not just from 13.3 percent to 14.4 percent of income for millionaires, but from 9.3 percent to 10.4 percent for the middle class. And prices of goods and services will rise due to the minimum wage increasing from $15.5 an hour to $16 for most workers. Plus the jump will be even higher, to $20 for most fast-food workers and $21 for health-care employees.
With that background, Chapman University’s forecast for the California economy for the coming year was rather gloomy. It was given Dec. 14 by economist and President Emeritus Jim Doti. He began by wishing Christmas season could let him be “the bearer of good news, but not so.” He said jobs growth will continue to slow, and even be less than the U.S. average, as shown in this graph from his presentation, where California is the green line, dotted for future estimates:… 

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