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Home / budget

California lawmakers unveil $17 billion budget cuts amid fiscal crisis

Governor Gavin Newsom and key legislative figures, including leaders from the state Senate and Assembly, have revealed a plan to reduce the state’s budget by $17 billion in an attempt to tame the looming $37.9 billion deficit pegged by Newsom in January. 

The plan to slash the deficit includes withholding $1 billion designated for intercity rail development and deferring another $500 million from the School Facility Aid Program that assists K-12 infrastructure projects. An integral part of the strategy to rebound from the financial hardship also involves pausing hiring for unfilled state positions, saving $762.5 million.

“We are able to meet this challenge thanks to our responsible fiscal stewardship over the past years,” Newsom stated, pointing to the near $38 billion in budget reserves that offer a buffer during these challenging times.

However, budget negotiations have sparked criticism from Republicans over what they claim is a lack of transparency. Republican Assembly Leader James Gallagher (R-Yuba City) views the proposal as inadequate, calling out the Democrats on what he deems “JV solutions” to “major league problems.”

As assembly and senate leaders such as Senate President pro tempore Mike McGuire (D-Healdsburg), the Legislative Analyst’s Office, and Governor Newsom confront the nuances of this impending crisis, Californians watch closely, awaiting the final composition of this austere budget plan.

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