California expecting $25 billion budget deficit due to 'lower revenue estimates'

California is expecting a $25 billion deficit in the next fiscal year after years of budget surpluses.

The Legislative Analyst’s Office released a report that stated that the deficit was a result of mostly "“lower revenue estimates.”

California's last budget was $308 billion with a $97 billion surplus. The previous budget was $263 billion with a $76 billion surplus, and now the state has $37.2 billion of reserves.

The office pointed out that its revenue estimates “represent the weakest performance the state has experienced since the Great Recession.”

“It’s not insignificant, but it’s also manageable,” Legislative Analyst Gabriel Petek said regarding the deficit, according to the Associated Press. “We don’t think of this as a budget crisis.” 

California Department of Finance spokesman H.D. Palmer acknowledged that the current economy not being in a good state hasn't been beneficial for California's circumstances. 

“While we’re in fact better prepared, that doesn’t mean that the decisions to close the coming budget gap won’t be difficult, particularly if the economic conditions that have slowed the economy continue, or get worse,” Palmer said in a statement. 

Democrat Gov. Gavin Newsom told the AP that the deficit was "realistic and reasonable."