california tourism revenue

California Office of Tourism

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Calculate Assessment

How to calculate your assessment.

The tourism assessment fee is based on California gross receipts from the most current available year-end revenue data. The reporting period should match the period used to report revenue for annual tax purposes. The Tourism Assessment Program monitors the year-end dates reported to verify that a company is reporting consistently. The formula for filing your assessment is:

(Total Gross Receipts X Percentage of Tourism X Assessment Rate) See below for help with Percentage of Tourism and Assessment Rate

Click here to file your assessment online now.

Total Gross Receipts

California Gross Receipts as defined in the Tourism Marketing Act: (l) “California Gross Receipts” means gross receipts minus returns and allowances from sales in California. Examples of California Gross Receipts are the amount shown on line 1c of Schedule F, Form 100 of the California Franchise Tax Board, 1996 revision date, line 3 on Schedule C, Form 1040 of the Internal Revenue Service, 1996 revision date, or for multi-state operations, column (b) on line 3, “total sales” of schedule R-1 of the California Franchise Tax Board, 1996 revision date.

About The Assessment Rates

Effective July 1, 2015 , assessment rates are as follows:

• For Accommodations, $1,950 per $1 million of travel and tourism revenue or 0.00195
• For Restaurants & Retail, $975 per $1 million of travel and tourism revenue or 0.000975.
• For Attractions & Recreation, $975 per $1 million of travel and tourism revenue or 0.000975.
• For Transportation & Travel Services, $975 per $1 million of travel and tourism revenue or 0.000975.
• For Passenger Car Rental, 3.5% of monthly revenue.

These assessment rates apply to assessments that are delinquent as of July 1, 2015.

Percentage Of Tourism

The percentage of revenue derived from travel and tourism is determined by each business location. Tourism percentage should reflect the amount of revenue that meets the travel and tourism revenue definition.

“Travel and Tourism Revenue” means California Gross Receipts derived from expenditures to and/or within California by people who (1) travel at least fifty (50) miles from home, one way, for purposes other than commuting to work or school; or (2) have an overnight accommodation as part of the travel, regardless of the distance or purpose traveled. “Home” as used in this definition means the place where the person has resided for the most recent 31 consecutive days.

Any revenue earned by an accommodation in conjunction with an overnight stay or by a traveler more than 50 miles from home is assessable. Revenue earned from guests staying 31 continuous nights or longer is not subject to the assessment.

Revenue derived from any individual or group of persons who travel 50 miles or more to a business location is considered travel and tourism revenue for a business within the attractions and recreation, transportation and travel services, or restaurant and retail industry categories. The business location and proximity to major freeways, attractions, outlet/premium shopping malls, lodging, or destination locations and venues should be considered when determining the percentage of revenue earned from travel and tourism. In addition, the business’ credit card data, market research, consumer surveys or analysis can provide contextual information to assist in determining percentage of tourism.

Each business can use any method to determine the percentage of revenue from tourism but may be required by the Office of Tourism to provide the documentation of the findings if the percentages are inconsistent with numbers reported in the given area.

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Maximizing the Tourism Industry’s ROI

As a 501(c)(6) nonprofit, Visit California strives to minimize operational costs and maximize the ROI for the industry

25 years of perfect, unqualified audits

According to an independent audit. Nonprofit organizations average 20% to 35% of their budgets spent on operational costs

“ --> "Last year, Visit California surged back into international markets and delivered a historic $38.2B in ad-influenced spending — spending that would not have occurred otherwise. Thanks to the industry’s vision and unity, California tourism is bouncing back from the pandemic stronger and sooner than anyone predicted."

“ --> "Fiscal responsibility has been and will continue to be a top priority for Visit California. Every dollar entrusted is used for the purpose it was given: to do what the industry cannot do for itself."

FY22/23 Annual Report

Visit California produces a more comprehensive version of this annual report. Download or request a full-length print copy.

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California Tourism Industry Reeling After Decade of Record Growth

Coronavirus pandemic ends Golden State’s decade of growth in spending,
 jobs and taxes generated

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Sacramento, Calif. (May 4, 2020) -- The coronavirus pandemic has devastated California’s tourism industry, erasing a record 10 years of growth in visitor spending, state and local tax revenue and jobs created, according to new economic data.

Tourism Economics projects California will lose $72.1 billion in visitor spending this year, nearly half of what was generated in 2019. The study also showed the pandemic will take 613,000 California jobs in May, more than half the workforce that had grown an average 3.2 percent a year for the last decade to employ 1.2 million Californians in 2019.

The projections come as Visit California released its 2019 economic impact report showing visitors to California generated more spending, tax revenue and jobs for a record 10th consecutive year in 2019.

The “California Travel Impacts” report , prepared for Visit California by Dean Runyan Associates, shows visitors spent $144.9 billion in 2019, a 3.2 percent increase over 2018. The number of travel and tourism jobs increased to 1.2 million last year, an additional 13,000 jobs. Travel-generated tax revenue also grew for the 10th straight year, providing $12.2 billion to state and local governments, a 3.4 percent increase over 2018.

“The data show just how vital tourism is to the California economy and why it must be restored when we control and ultimately overcome this deadly outbreak,” said Caroline Beteta, president and CEO of Visit California, the state’s tourism marketing non-profit organization. “When that time arrives, we’ll be calling on Californians to become the main drivers of recovery by traveling in the state, shopping locally and visiting local restaurants, wineries and attractions. California has led the nation in its response to the health crisis, and it will lead the economic comeback.”

Travel-related economic losses from the pandemic have been hardest on tourism workers, rural destinations in which tourism dominates the economy and hundreds of cities that use hotel taxes to fund basic municipal services.

In 2018, according to the Dean Runyan report, tourism made up more than 10 percent of the labor force in 15 California counties. For example, more than half the workforce in Mono County is attributable to tourism.

Nearly every California city – 482 to be exact – levied hotel taxes in FY17-18 that raised nearly $2.6 billion for municipal services. That’s money for police and fire and most of the general government functions cities take on. Across California, 68 cities count on TOT revenue to cover at least 20 percent expenditures.

Tourism is one of the most labor-intensive economic sectors and creates jobs faster than other sectors of the economy. During the Great Recession, overall California employment fell 8.6 percent between 2008 and 2010, while tourism jobs dipped only 5.6 percent.

Release of both economic reports coincides with the start of California Tourism Month. Established by legislative resolution in 2016, tourism month each May recognizes the major contribution travel and tourism makes to California’s economy.

“Tourism in California will rebound, because it always has -- after earthquakes, wildfires, the 9/11 terrorist attacks or economic crises,” Beteta said. “Californians are proud and resilient people. They love their state, and when the time is right and they are ready to travel, the California travel industry is here to welcome them.”

ABOUT VISIT CALIFORNIA Visit California is a nonprofit organization with a mission to develop and maintain marketing programs – in partnership with the state’s travel industry – that keep California top-of-mind as a premier travel destination. For more information about Visit California and for a free California Official State Visitor's Guide, go to www.visitcalifornia.com . For story ideas, media information, downloadable images, video and more, go to media.visitcalifornia.com .

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Visit California Releases New Economic Impact of Travel Report, County-Specific Details Available

According to Visit California’s recently released 2022  Economic Impact Report , California's tourism industry is on the cusp of achieving an accelerated recovery as visitors from around the world return to rediscover the Golden State. Projections now show visitor spending in 2023 will exceed the levels of 2019. 

Visitor spending hit $134.4 billion in California in 2022 – 93% of the way back to pre-pandemic levels – navigating the challenges of the Covid-19 pandemic and global inflation.   

Jobs in the state’s tourism industry also nearly returned to pre-pandemic levels in 2022, according to the report. The travel sector added 157,000 jobs in California in 2022, bringing the statewide total to 1.1 million jobs supported by tourism. Visitor-generated tax revenue to support essential services in California communities increased by 21.6% to $11.9 billion. 

This indicates that the jagged tourism recovery seen a year ago across California is leveling out. Tourism spending in 20 of the state’s 58 counties recovered enough in 2022 to exceed pre-pandemic levels.  

 The economic impact report release coincides with California Tourism Month this May. It was designated by the state Legislature in 2016 to amplify the tourism industry’s economic and lifestyle benefits to all Californians. Visit California emphasizes how Californians can continue to boost tourism’s recovery by supporting local and regional hospitality and leisure businesses or discovering new destinations in the Golden State. 

 Check out the full EIR report and find details by county using the interactive map of data available on the Visit California website  here . 

Times of San Diego

Local News and Opinion for San Diego

California Tourism Rebound: Industry Expected to Exceed Pre-Pandemic Highs in 2023

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California’s tourism economy grew by 32% in 2022 and is poised to set new records this year for visitor spending, employment and tax generation, according to an industry economic impact report.

The data, from Visit California , a Sacramento-based advocacy group for the state’s tourism industry, includes breakouts from local regions. San Diego County tourism, for instance, generated $13.3 billion in visitor spending – around 10% of the state’s total – and 96,000 jobs.

Key statewide takeaways include:

• Travel spending increased to $134.4 billion across California last year, a nearly 32% increase over 2021 that brought spending within 7% of pre-pandemic levels.
• California’s travel sector added 157,000 jobs in 2022. The 1.1 million positions is within 6% of the 2019 levels, before the devastating losses that hit the industry during the pandemic.
• Projections from Tourism Economics show California this year will surpass the record $144.9 billion in visitor spending achieved in 2019, a year sooner than expected.
• State and local taxes paid by visitors reached $11.9 billion, within 10% of pre-pandemic levels.

Most of the spending is concentrated on hotel and other accommodations, followed by food services and local transportation and retail sales.

Tourism jobs are also concentrated in those areas, with more than 600,000 in accommodations and food services alone.

Travel spending plummeted in 2020, as the pandemic lockdown took hold. Tourism in California had generated nearly $145 billion the year before; that figure that was cut in half.

New community sentiment research  was also released by Visit California, indicating that state residents value the tourism economy. More than 70% say tourism generates local business opportunities and provides jobs for residents.

Visit California

The Golden State's thriving economy depends on tourism. It helps communities grow and improves quality of life for every Californian.

SUSTAINABLE TRAVEL MATTERS TO CALIFORNIA

Visit native california launches.

Francesca Gracey | 2 min.

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The Sustainable Way: Airports, Rental Cars Meeting the Challenge

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Responsible travel: The code that guides the Golden State

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2022 ECONOMIC IMPACT BY STATE, REGION & COUNTY

CALIFORNIANS FIND JOB OPPORTUNITIES IN TRAVEL

Californians continue to find rewarding job opportunities within the state’s growing travel industry. Students are opting for hospitality education and training, while veterans who have spent years in the industry are moving up. Passionate and resilient people dominate the sector, and their drive for excellence, innovation and bridge building has helped California tourism build back stronger.

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ECONOMIC IMPACT BY LEGISLATIVE DISTRICT 2021

Economic significance of the travel industry in California’s 40 Senate districts and 80 Assembly districts in 2021. The reports include visitor spending, earnings, employment and tax revenue (local and state) per district. The estimates are comparable to the county, regional and state travel impacts.

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What state makes the most money from tourism?

By Audrey Wilson   |   Verified by David Boyd   |   Published June 29, 2023

Tourism is a thriving industry in the United States that attracts millions of visitors from around the world each year.

It's not hard to see why. Renowned for its diverse landscapes, vibrant cities, cultural attractions, and iconic landmarks, the U.S. offers a wealth of experiences for travelers seeking adventure, entertainment, and cultural enrichment.

But where do those tourist dollars get spent?

From the sun-soaked beaches of California to the bustling streets of New York, these are the states that benefit most from domestic and international tourism.

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Key takeaways, pennsylvania.

• California leads the pack in terms of tourism revenue, generating an impressive $139 billion in 2022.
• The top 10 states by tourism revenue showcase a mix of well-known destinations and unexpected contenders. States like Texas and Pennsylvania, not typically associated with tourism, make the list, highlighting the variety of experiences available throughout the United States.
• The United States offers a wide range of tourist destinations that cater to different interests and preferences. Whether you're seeking sun-soaked beaches in Florida, exploring historical sites in Pennsylvania, or marveling at the natural wonders of Arizona's deserts, there is something for every type of traveler.
• Regardless of your passion, be it history, culinary delights, or adrenaline-pumping adventures, the top 10 states by tourism revenue have attractions and activities that cater to your interests.

$139 billion

California takes the lead in tourism revenue, raking in a staggering $139 billion in 2022 .

The state's appeal lies in its diverse range of attractions, from the enchantment of Disneyland and the glitz of Hollywood to the breathtaking beauty of national parks like Yosemite and Joshua Tree. The allure of California extends beyond its iconic landmarks, as its miles of beaches, mountains, and deserts offer something for every traveler. The year-round temperate weather further enhances its draw, making it a sought-after destination throughout the year.

With its unrivaled combination of entertainment, natural wonders, and favorable climate, California continues to captivate visitors from around the world and remains the crown jewel in terms of tourism revenue. Whether seeking family fun, Hollywood glamour, or outdoor adventures, California promises an unforgettable experience that keeps travelers coming back for more.

$101.9 billion

Florida's tourism industry continues to thrive, with an estimated 35 million travelers visiting during the third quarter of 2022 . This marked a notable increase of 6.9% compared to the previous year and an impressive 8% rise when compared to pre-pandemic levels in 2019. In 2021, visitors to Florida contributed $101.9 billion to the state's economy and supported over 1.7 million jobs, emphasizing the significant economic impact of tourism.

While the renowned theme parks in Orlando, including Walt Disney World Resort and Universal Orlando Resort, continue to attract millions of visitors annually, Florida offers much more beyond these iconic attractions. The state's diverse offerings encompass the breathtaking beauty of the Everglades, the idyllic beaches of the Florida Keys, and the opportunity for unforgettable cruises departing from its shores. With a wide range of experiences, from vibrant cities like Miami and Tampa to pristine coastal areas and unique natural wonders, Florida appeals to travelers seeking adventure, relaxation, or family-oriented fun.

Florida's consistent growth in visitor numbers, coupled with its substantial contributions to the state's economy, highlights the enduring appeal of the Sunshine State as a premier tourist destination. With its favorable climate, diverse attractions, and well-developed tourism infrastructure, Florida continues to captivate travelers from around the world, solidifying its position as a prominent player in the global tourism industry.

$90.7 billion

Nevada, the Silver State, experienced a thriving travel and tourism industry with a significant economic impact. In 2022, the industry generated an impressive $90.7 billion impact on Nevada's economy , surpassing pre-pandemic levels. The renowned city of Las Vegas, with its iconic Strip and world-class resorts, continues to be a major draw for visitors worldwide.

The city's vibrant entertainment, casino scene, and diverse culinary offerings create an atmosphere of excitement and allure. However, Nevada's appeal extends beyond Las Vegas, as the state also boasts stunning natural beauty. The proximity to the Grand Canyon and the breathtaking landscapes of Lake Tahoe provide outdoor enthusiasts with opportunities for exploration and recreational activities.

$67.6 billion

The Lone Star State, is not only a significant player in the travel and tourism industry but also a major contributor to job growth and earnings. In 2022, the industry supported a remarkable 10% increase in travel-related jobs, reaching a total of 1.2 million jobs across the state. These jobs encompass various sectors, including hospitality, transportation, and entertainment. Alongside this job growth, earnings in the travel sector soared to $67.6 billion , further highlighting the economic significance of travel and tourism in Texas.

Texas offers a diverse range of attractions, from the captivating Houston Space Center to the historically significant JFK assassination tour in Dallas. Its varied landscape encompasses deserts, beaches, and mountains, while its cities, such as Austin, Dallas, and Houston, offer distinct vibes and a wealth of cultural experiences.

The state's appeal lies in its ability to cater to different interests and preferences. Whether visitors seek adventure in the scenic deserts, relaxation on the beautiful Gulf Coast beaches, or exploration of vibrant urban centers, Texas has something to offer. The economic impact generated by the travel and tourism industry underscores its importance as a key driver of Texas' economy, solidifying the state's position as a noteworthy tourist destination.

$60 billion

The Empire State may not have beaches or theme parks, but its cultural offerings make it a captivating destination. In 2022, the city welcomed a staggering 56.4 million visitors, fueling its economic recovery and supporting around 410,000 jobs in the leisure and hospitality sector. The city's renowned museums, including The Met and MoMA, showcase exceptional art collections, while Broadway enthralls audiences with its world-class theater productions. Iconic landmarks like the Statue of Liberty and Central Park add to the city's allure, making it a must-visit for cultural enthusiasts.

Beyond New York City, the state offers additional cultural gems, such as the historic sites of the Hudson River Valley and the scenic beauty of the Finger Lakes region. The cultural richness of New York attracts millions of visitors worldwide, generating over $40 billion in direct visitor spending and contributing to an estimated $60 billion in total economic impact. With its vibrant atmosphere and cultural treasures, New York promises an unforgettable experience for those seeking art, history, and the unique essence of the city that never sleeps.

$38 billion

Pennsylvania's tourism industry has experienced remarkable growth, with nearly 180 million visitors in 2021, marking an increase of over 28 million visitors compared to previous years. These visitors contributed $38.0 billion in direct spending, supporting hotels, restaurants, retailers, and other businesses across the state. The total economic impact of tourism in Pennsylvania reached $66.3 billion in 2021 , sustaining over 450,000 jobs and generating $4.2 billion in state and local tax revenues.

Pennsylvania's allure as a tourist destination lies in its rich history, diverse attractions, and vibrant cities. From the historic landmarks of Philadelphia, including Independence Hall and the Liberty Bell, to the breathtaking landscapes of the Pocono Mountains and the scenic beauty of Lancaster County, the state offers a wide range of experiences. The vibrant cities of Pittsburgh and Harrisburg add to the appeal, providing cultural and recreational opportunities for visitors.

$34.4 billion

Georgia's tourism industry experienced remarkable success in 2021, attracting nearly 200 million visitors who collectively contributed $34.4 billion in direct visitor spending. This robust influx of visitors generated over $4 billion in state and local tax revenues, fueling the state's economy and supporting vital public services. According to state data, the total economic impact of Georgia's tourism industry reached an impressive $64.5 billion , highlighting its significant role in driving economic growth and prosperity.

The appeal of Georgia as a tourist destination lies in its diverse range of attractions and experiences. The dynamic city of Atlanta stands out as a major draw, offering a blend of rich history, cultural landmarks, and modern amenities. From exploring the historic sites associated with Martin Luther King Jr. to immersing oneself in the vibrant arts scene, Atlanta provides an array of captivating experiences. Georgia's natural beauty also shines through its scenic coastal beaches and picturesque mountain ranges, offering opportunities for outdoor adventures and leisure activities.

$32.2 billion

Illinois boasts a robust tourism industry that significantly contributes to the state's economy. In 2021, direct visitor spending reached $32.2 billion, resulting in a remarkable total economic impact of $59.5 billion. This substantial impact not only fuels economic growth but also supports 388,800 jobs and generates $4.3 billion in state and local tax revenue.

With its diverse range of attractions and activities, Illinois offers something for every visitor. Chicago, the state's vibrant metropolis, stands out as a top destination, attracting tourists with its renowned architecture, cultural institutions like the Art Institute of Chicago, and vibrant arts scene. Historic sites, such as the Abraham Lincoln Presidential Library and Museum in Springfield, provide a glimpse into the state's rich heritage, while nature enthusiasts can explore the scenic beauty of Shawnee National Forest and enjoy outdoor adventures along Lake Michigan's shores.

$53 billion

Ohio's tourism industry reached new heights in 2022, as it recorded a remarkable $53 billion in visitor spending and welcomed a staggering 233 million visitors . This outstanding achievement showcases the state's appeal as a tourist destination and its ability to attract a diverse range of visitors. Furthermore, the industry's growth has had a significant positive impact on Ohio's economy, supporting a substantial workforce of 424,339 seasonal, part-time, and full-time jobs.

Visitors to Ohio are drawn to its wide array of attractions and experiences. The state is home to world-renowned amusement parks, including Cedar Point and Kings Island, which offer thrilling rides and entertainment for all ages. Ohio's vibrant cities, such as Columbus, Cleveland, and Cincinnati, provide cultural richness with their museums, art galleries, and professional sports teams, ensuring there's something for everyone. Additionally, Ohio's natural beauty is showcased through scenic locations like Hocking Hills, the picturesque shores of Lake Erie, and the captivating Cuyahoga Valley National Park.

$23.6 billion

Arizona's tourism industry flourishes as visitors are captivated by its warm weather and remarkable natural beauty, making it the state's top export industry in 2021. The year witnessed an impressive 40.9 million visitors who collectively spent $23.6 billion , driving economic growth and supporting job creation. The industry's significant contribution of $3.4 billion in tax revenue translates to an average tax savings of $738 for every Arizona household and supports a workforce of 167,200 industry jobs.

The state's appeal as a tourist destination lies in its stunning landscapes and diverse attractions. The world-famous Grand Canyon stands as a testament to its natural beauty, attracting millions of visitors annually with its awe-inspiring views. From the picturesque Sedona to the breathtaking Monument Valley and the captivating Sonoran Desert, the state offers ample opportunities for outdoor exploration and adventure. Arizona's vibrant cities, including Phoenix and Tucson, provide cultural experiences, renowned golf courses, and a thriving culinary scene that cater to various interests and preferences.

The Bay State may be small, but it packs a punch with $28.3 billion in tourism revenue in 2019. Boston is the centerpiece, with its rich history and famous landmarks like the Freedom Trail and Fenway Park. Still, Massachusetts also offers picturesque coastal areas like Cape Cod and Martha’s Vineyard and the beautiful Berkshires in the western part of the state.

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Assessment Info

Fueling global marketing.

Visit California works in close coordination with  California's Office of Tourism  — while Visit California conducts marketing programs that drive visitation, the Office of Tourism oversees the assessment program that helps fund these initiatives.

California businesses participating in the Tourism Assessment Program are identified as part of five travel and tourism industry categories:

• Accommodations
• Attractions and Recreation
• Restaurants and Retail
• Transportation and Travel Services
• Passenger Rental Cars

Visit the California Office of Tourism for more details about the program, to find out what qualifies as an assessed business, and to learn how to calculate and file your assessment.

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California lawmakers vote to reduce deficit by $17 billion, but harder choices lie ahead

Assemblyman Jesse Gabriel, chair of the Assembly Budget committee, smiles as a measure to reduce the state deficit is approved the Assembly at the Capitol in Sacramento, Calif., Thursday, April 11, 2024. Both houses approved the bill that takes a number of steps to reduce the state budget deficit by about $17 billion. Gov. Gavin Newsom has said the deficit is about $38 billion. (AP Photo/Rich Pedroncelli)

Assemblyman Jesse Gabriel, chair of the Assembly Budget committee, D-Encino, watches as the votes are posted on measure to reduce the state budget deficit at the Capitol in Sacramento, Calif., Thursday, April 11, 2024. Both houses approved the bill that takes a number of steps to reduce the state budget deficit by about $17 billion. Gov. Gavin Newsom has said the deficit is about $38 billion. (AP Photo/Rich Pedroncelli)

State Sen. Scott Wiener, D-San Francisco, chairman of the Senate Budget and Fiscal Review Committee, watches as the Senate votes on measure to reduce the state budget deficit at the Capitol in Sacramento, Calif., Thursday,, April 11, 2024. Both houses approved the bill that takes a number of steps to reduce the state budget deficit by about $17 billion. Gov. Gavin Newsom has said the deficit is about $38 billion.(AP Photo/Rich Pedroncelli)

State Sen. Roger Niello, R-Fair Oaks, vice chairman of the Senate Budget and Fiscal Review Committee, urges members to reject a measure to reduce the state budget deficit at the Capitol in Sacramento, Calif., Thursday,, April 11, 2024. Calling it crisis budgeting with optimism Niello and other Republican lawmakers say the bill only delays dealing with the budget deficit. Both houses approved the bill that takes a number of steps to reduce the state budget deficit by about $17 billion. Gov. Gavin Newsom has said the deficit is about $38 billion.(AP Photo/Rich Pedroncelli)

Assembly Vince Fong, vice chairman of the Assembly Budget Committee, Fiscal Review Committee, urges Assembly members to reject a measure to reduce the state budget deficit at the Capitol in Sacramento, Calif., Thursday,, April 11, 2024. Fong said the bill “only pushes the crisis into the future.” Both houses approved the bill that takes a number of steps to reduce the state budget deficit by about $17 billion. Gov. Gavin Newsom has said the deficit is about $38 billion. (AP Photo/Rich Pedroncelli)

Assembly Speaker Robert Rivas, D-Hollister, talks to reporters after the Assembly approved a measure to reduce the state budget deficit at the Capitol in Sacramento, Calif., Thursday,, April 11, 2024. Both houses approved the bill that takes a number of steps to reduce the state budget deficit by about $17 billion. Gov. Gavin Newsom has said the deficit is about $38 billion. (AP Photo/Rich Pedroncelli)

State Senate Pro Tempore Mike McGuire urges lawmakers to approve a bill to reduce the state budget deficit at the Capitol in Sacramento, Calif., Thursday,, April 11, 2024. Republican lawmakers opposed the bill saying it only delays dealing with the budget deficit. Both houses approved the measure that takes a number of steps to reduce the state budget deficit by about $17 billion. Republican lawmaker say Gov. Gavin Newsom has said the deficit is about $38 billion.(AP Photo/Rich Pedroncelli)

Senate President Pro Tempore Mike McGuire, right, talks to State Sen. Scott Wiener, chairman of the Senate Budget and Fiscal Review Committee, left, before Wiener presents legislation to reduce the state budget deficit at the Capitol in Sacramento, Calif., Thursday,, April 11, 2024. Republican lawmakers opposed the bill saying it only delays dealing with the budget deficit. Both houses approved the bill that takes a number of steps to reduce the state budget deficit by about $17 billion. Gov. Gavin Newsom has said the deficit is about $38 billion.(AP Photo/Rich Pedroncelli)

State Sen. Scott Wilk, R-Santa Clarita listens as members speak on a bill to reduce the state b, dget deficit at the Capitol in Sacramento, Calif., Thursday,, April 11, 2024. Republican lawmakers opposed the bill saying it only delays dealing with the budget deficit. Both houses approved the bill that takes a number of steps to reduce the state budget deficit by about $17 billion. Gov. Gavin Newsom has said the deficit is about $38 billion.(AP Photo/Rich Pedroncelli)

State Sen. Roger Niello, R-Fair Oaks, vice chairman of the Senate Budget and Fiscal Review Committee, back to camera, urges lawmakers to reject a measure to reduce the state budget deficit at the Capitol in Sacramento, Calif., Thursday, April 11, 2024. Calling it crisis budgeting with optimism Niello and other Republican lawmakers say the bill only delays dealing with the budget deficit. Both houses approved the bill that takes a number of steps to reduce the state budget deficit by about $17 billion. Gov. Gavin Newsom has said the deficit is about $38 billion.(AP Photo/Rich Pedroncelli)

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SACRAMENTO, Calif. (AP) — California lawmakers don’t know for sure how big their budget deficit is, but on Thursday they decided it’s big enough to go ahead and reduce spending by about $17 billion.

The vote represents a preemptive strike from Democratic Gov. Gavin Newsom, who is trying to get ahead of a stubborn shortfall that has been increasing every month and will likely extend into next year and beyond — when the second-term governor could be eyeing a campaign for the White House.

The true size of the deficit has been difficult to pin down. In January, Newsom insisted it was about $38 billion . But the nonpartisan Legislative Analyst’s Office said it was actually $58 billion because Newsom didn’t include some reductions in public education spending. Then in February — after state revenues continued to come in below expectations — the LAO revised its estimate to as much as $73 billion.

State budgets across the country have tightened as economic growth has slowed and states have exhausted the billions of dollars in aid from the federal government during the coronavirus pandemic. The problem is more pronounced in California, where the budget is easily the largest in the country — and in fact the state’s economy is bigger than most countries.

The deficit could be a liability to Newsom, particularly as he steps into his role as a top surrogate of President Joe Biden’s reelection campaign. Newsom and his allies in the state Legislature have been doing everything possible to reduce the deficit. For instance in December, the governor ordered state agencies to immediately cut costs. And last month, Newsom signed a law raising a tax on companies that manage California’s Medicaid program, raising another $1.5 billion.

Newsom won’t announce an updated deficit number until next month, after Californians have filed their tax returns and state officials have a better idea of how much money they have. Thursday’s vote in the state Legislature means Newsom can announce a number that will be much smaller than it would have been. The $17 billion in reductions lawmakers approved Thursday, combined with the anticipated withdrawal of about $13 billion from the state’s various savings accounts, means Newsom can already count on reducing about $30 billion of the shortfall.

“The reality is that even with the deal, the state still faces a deficit of tens of billions of dollars,” said Chris Hoene, executive director of the California Budget and Policy Center. “They’ve left a lot of hard stuff on the table to be resolved over the next two months.”

There were no headline-grabbing cuts in the reductions lawmakers approved on Thursday. Despite California’s recent budget woes, the Democrats in charge have refused to raise income taxes or impose steep cuts to the most expensive programs, including health care and public education.

Instead, most of the savings comes from either cancelling or delaying spending that was approved in previous years but hasn’t yet been spent. It also relies on a number of accounting tricks to make the shortfall appear smaller, including shifting paychecks for state workers by one day from June 30 to July 1 so the state can count $1.6 billion in salaries for the next fiscal year.

Republicans have long assailed this strategy, arguing that Democrats are just pushing spending into the future in the hopes the deficit will be temporary and revenues will recover quickly. Both the LAO and the Newsom administration have projected multibillion-dollar budget deficits not just this year, but also for next year and the year after that.

“This is really crisis budgeting with optimism,” said Republican state Sen. Roger Niello.

Democratic leaders don’t look at it that way. For much of the past decade, California lawmakers have enjoyed strong surpluses that have enabled a vast expansion of government services. That includes paying for free lunches for all public school students and making all low-income adults eligible for government-funded health insurance regardless of their immigration status .

By delaying spending and shifting expenses to other funds, Democrats say they are protecting essential programs from budget cuts for as long as possible.

“We’re trying to make thoughtful choices here,” said Jesse Gabriel, a Democrat and chair of the Assembly Budget Committee. “One of the worst outcomes here would be to make a cut to a critical program that serves our most vulnerable folks and to later realize that you didn’t need to make that cut.”

As the deficits have increased, more Democrats are pushing for bigger changes. In public hearings this week, Democratic Assemblymember Cottie Petrie-Norris said the state is “not going to solve this problem anymore by just stopping one-time spending.” And Democratic state Sen. Aisha Wahab said she believed the state must “be even more conservative on what we’re planning.”

Assembly Speaker Robert Rivas told reporters on Thursday that he believes the deficit is “a longer structural problem,” adding: “That is concerning.” He noted lawmakers are considering a number of proposals to borrow money to pay for policy priorities, including housing, the environment and school facilities. Each of those would require voter approval.

“We’re a little bit closer to closing this budget deficit,” Rivas said. “We have some tough decisions to make moving forward.”

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The Sunday Read: ‘What I Saw Working at The National Enquirer During Donald Trump’s Rise’

Inside the notorious “catch and kill” campaign that now stands at the heart of the former president’s legal trial..

By Lachlan Cartwright

Read by David Linski

Produced by Jack D’Isidoro and Aaron Esposito

Narration produced by Anna Diamond

Edited by John Woo

Original music by Aaron Esposito

Engineered by Corey Schreppel and Steven Szczesniak

Listen and follow The Daily Apple Podcasts | Spotify

At the center of the criminal case against former President Donald Trump in Manhattan is the accusation that Trump took part in a scheme to turn The National Enquirer and its sister publications into an arm of his 2016 presidential campaign. The documents detailed three “hush money” payments made to a series of individuals to guarantee their silence about potentially damaging stories in the months before the election. Because this was done with the goal of helping his election chances, the case implied, these payments amounted to a form of illegal, undisclosed campaign spending. And because Trump created paperwork to make the payments seem like regular legal expenses, that amounted to a criminal effort at a coverup, argued Alvin Bragg, the district attorney of Manhattan. Trump has denied the charges against him.

For Lachlan Cartwright, reading the indictment was like stepping through the looking glass, because it described a three-year period in his own professional life, one that he has come to deeply regret. Now, as a former president faces a criminal trial for the first time in American history, Cartwright is forced to grapple with what really happened at The Enquirer in those years — and whether and how he can ever set things right.

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Additional production for The Sunday Read was contributed by Isabella Anderson, Anna Diamond, Sarah Diamond, Elena Hecht, Emma Kehlbeck, Tanya Pérez, Frannie Carr Toth and Krish Seenivasan.

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High-profile venue will close doors in fresh jolt to downtown San Jose

A pr. 15—SAN JOSE — A high-profile downtown San Jose venue, weighed down by a sour California business climate and city rules, will shut its doors within days in a fresh blow to the city's frail urban core.

Axe-Men Throw House, located near the corner of South Second Street and East Santa Clara Street, will cease operations this month, according to the venue's principal owner and operator and a Facebook post.

The shutdown comes despite some bright business metrics for Axe-Men Throw House.

"Business was improving," said Sarah Sed, principal owner and operator of Axe-Men Throw House. "We had a great product and there was a lot of interest. Our patrons loved that they got customized coaching on ax throwing. Coaches would be there during a session."

Ultimately, however, the revenue improvement over two-plus years of operation didn't suffice.

"We could never make enough money above and beyond the high cost of doing business in California and the high rents in San Jose," Sed said. "We could never be consistently profitable."

Even the high-profile location at 14 South Second Street in the old Voodoo Lounge building wasn't enough to bolster the long-term success of the axe-throwing venture.

Ax-Men Throw House publicly announced its decision to close in an April 12 post on its Facebook page.

"After much consideration, we have made the difficult decision to permanently close Axe-Men Throw House on April 21," the company stated in the Facebook post. "We want to invite all our amazing customers to join us during our regular business hours until our last day. Enjoy one last throw with us!"

Sed decided not to renew its lease in the building. The ax-throwing venue opened in 2022 and its rental agreement had reached its final stages.

The start-up costs and ongoing regulatory challenges contributed to the decision, she said.

"The permitting process with both Santa Clara County and the city of San Jose was very difficult," Sed said. "We ran into a lot of hurdles. It became a question of whether it was worth it to put more money into it."

On top of the local permitting difficulties, the sour business climate and byzantine regulatory requirements in California were also factors behind the upcoming closure of the ax-throwing venue.

Sed stated that she believes significant differences exist between the bureaucratic restrictions in California compared with Texas, where she also operates an ax-throwing outlet, in Houston.

"Of course, it's harder to do business in California than in Texas," Sed said. "Commercial real estate space costs more in California. There are a lot more restrictions. Everything is just more expensive in California."

The company issued a heartfelt farewell in its public post on the Facebook platform.

"We appreciate each and every one of you who has supported us throughout the years," Axe-Men Throw House stated in its Facebook post. "Let's make some final memories together before we say goodbye."

Another ax-throwing venue is slated to open, potentially by the end of the year, a few blocks away on the ground floor of the Paseo Building at 201 South Second Street.

Unofficial Logging is the name of the planned venue. The new ax-throwing venture will be located near Urban Putt, a miniature golf course venue that opened its doors in February and is drawing healthy crowds.

As for Axe-Men Throw House, the departure is a fresh blow to San Jose's urban core, which is still battling to recuperate from the coronavirus-spawned economic maladies that still afflict downtown districts in the Bay Area and nationwide.

Despite the ongoing economic woes in San Jose's urban heart, Sed regrets her venture didn't become a long-term success story in the city's downtown.

"I wish it had worked out," Sed said. "San Jose is a great city."

(c)2024 Silicon Valley, San Jose, Calif. Distributed by Tribune Content Agency, LLC.