California Governor Gavin Newsom announced a budget deficit that could delay a minimum wage increase for health care workers and necessitate spending cuts in housing and climate programs.
Despite this, Newsom is committed to maintaining major spending commitments, including free kindergarten and health insurance for low-income adults.
The deficit will be covered by pulling from reserves and implementing spending cuts. (Trending: Joe Biden Caught In Another Major Lie About J6)
Newsom said, “We are just a little less pessimistic than they are about the next year.”
David Huerta, president of the Service Employees International Union California, said he “looks forward to working with the Administration and the Legislature to ensure that these critically needed workforce investments are implemented.”
“This is a story of correction, a story of normalization after a period of a tremendous amount of distortion,” explained Newsom.
Kevin Gordon, a veteran lobbyist who represents public school districts, said, “There are no deferrals, there are no claw backs of money school districts have already gotten, and not a single cut to ongoing permanent programs.”
“It just validates the governor’s huge commitment to public education. There’s a lot of grateful school districts out there today,” he continued.
State Sen. Roger Niello, a Republican representing Fair Oaks and vice-chair of the Senate budget committee said, “A real risk of not developing a sustainable spending plan is that the budget makes commitments that maybe it can’t follow up on if we do have severe continued deficits.”
The budget shortfall is estimated at $37.9 billion, and Newsom’s plan includes delaying certain spending and using reserve funds.
Legislative Analyst Gabriel Petek said, “They fall on the optimistic side of what we consider most plausible.”
The state’s economy, while large, is volatile, and revenue declines are attributed to a return to normal post-pandemic.
The public education budget will see a decrease, but funds from a special savings account will compensate for the shortfall.
Some express concerns about delaying spending rather than making more cuts.
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