California is facing a $68 billion budget deficit, the nonpartisan Legislative Analyst's Office said Thursday. Most of the deficit comes from lower than expected tax revenues this year, the office said.
The problem is inflation and how the U.S. government is trying to control it. The Federal Reserve has been increasing a key interest rate that makes it more expensive for people and businesses to borrow money. That means fewer people are buying homes and fewer businesses are hiring workers.
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