California Democrats agree on plan to reduce budget deficit by $17.3 billion
8 months, 2 weeks ago

California Democrats agree on plan to reduce budget deficit by $17.3 billion

Associated Press  

SACRAMENTO, Calif. — California Democratic leaders announced Thursday they had come to an agreement on a plan that would reduce the state’s staggering multibillion-dollar shortfall by $17.3 billion through a combination of spending cuts, delays and deferrals. The agreement came after lawmakers passed legislation to increase the state’s tax on managed care health plans, also known as the managed care organization tax, which is estimated to generate $3.8 billion next fiscal year. “We are able to meet this challenge thanks to our responsible fiscal stewardship over the past years, including record budget reserves of close to $38 billion,” Newsom said in a statement. “We are all committed to delivering an on-time balanced budget and this early action agreement is a critical first step to shrink the state’s shortfall,” Senate President pro Tempore Mike McGuire said in a statement.

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History of this topic

California budgets up to $12 million for reparations bills, a milestone in atoning for racist legacy
5 months, 3 weeks ago

California budgets up to $12 million for reparations bills, a milestone in atoning for racist legacy

Associated Press  

SACRAMENTO, Calif. — California plans to spend up to $12 million on reparations legislation under a budget signed by Democratic Gov. The state Legislature is weighing proposals to issue a formal apology for California’s role in perpetuating discrimination against Black residents, to create an agency to administer reparations programs, and to identify families whose property was unjustly seized through eminent …

California Gov. Gavin Newsom signs budget to close $46.8B budget deficit
5 months, 3 weeks ago

California Gov. Gavin Newsom signs budget to close $46.8B budget deficit

Associated Press  

SACRAMENTO, Calif. — Gov. Gavin Newsom on Saturday signed California’s budget to close an estimated $46.8 billion deficit through $16 billion in spending cuts and temporarily raising taxes on some businesses. Lawmakers passed the budget Wednesday following an agreement between Newsom and legislative leaders in which both sides made concessions and also had wins as they were forced, for the …

Gov. Newsom signs budget to close California’s $46.8-billion budget deficit
5 months, 3 weeks ago

Gov. Newsom signs budget to close California’s $46.8-billion budget deficit

LA Times  

California’s budget crisis comes at a bad time for Gov. Gavin Newsom on Saturday signed California’s budget to close an estimated $46.8-billion deficit through $16 billion in spending cuts and temporarily raising taxes on some businesses. Lawmakers passed the budget Wednesday following an agreement between Newsom and legislative leaders in which both sides made concessions and also had wins as …

California Legislature approves budget that slashes spending to address $46.8 billion deficit
5 months, 3 weeks ago

California Legislature approves budget that slashes spending to address $46.8 billion deficit

Associated Press  

SACRAMENTO, Calif. — California lawmakers approved a budget on Wednesday that slashes spending and temporarily raises taxes on some businesses to close an estimated $46.8 billion budget deficit. The budget includes an agreement that Newsom and lawmakers will try to change the state constitution in the coming years to allow California to put more money in reserve to prepare for …

Can California control its boom-and-bust budget?
6 months, 1 week ago

Can California control its boom-and-bust budget?

LA Times  

California has until Saturday to balance a budget that is billions of dollars out of whack, and not in a good way. We asked Chris Hoene, the executive director of the progressive California Budget and Policy Center, and Joshua Rauh, a Stanford economist and scholar at the conservative Hoover Institution, how the state could avoid the whiplash of budget surpluses …

With deadline nearing, Newsom and lawmakers disagree over solutions to California budget crisis
6 months, 2 weeks ago

With deadline nearing, Newsom and lawmakers disagree over solutions to California budget crisis

LA Times  

Gavin Newsom in Sacramento on Jan. 10, 2024; Sen. Mike McGuire in Healdsburg on Jan. 26, 2024; and Assembly Speaker Robert Rivas in Sacramento on June 30, 2023. Gavin Newsom and Democrats in the state Legislature are working to settle their differences over access to public healthcare services, delaying minimum wage increases for workers and pausing tax credits for businesses …

California’s budget deficit has grown. Here’s how Gov. Newsom is responding
7 months, 1 week ago

California’s budget deficit has grown. Here’s how Gov. Newsom is responding

LA Times  

Gavin Newsom unveils his revised 2024-25 state budget during a news conference in Sacramento on May 10, 2024. Gavin Newsom released his revised $288-billion budget proposal last week, which included a bleak update on the state’s deficit: It has grown from earlier projections. The cuts hamper Newsom’s progressive policy agenda, The Times’ Taryn Luna, Mackenzie Mays and Anabel Sosa reported, …

California has a multibillion-dollar budget deficit. Here’s what you need to know
7 months, 1 week ago

California has a multibillion-dollar budget deficit. Here’s what you need to know

Associated Press  

SACRAMENTO, Calif. — California has a huge budget problem that could force thorny decisions from Democratic leaders who enjoyed a more than $100 billion surplus just three years ago. Gavin Newsom on Friday announced his plan to address the deficit in the state’s budget. California’s constitution requires lawmakers and the governor to balance the budget — meaning the state can’t …

Gov. Gavin Newsom proposes painful cuts to close California’s growing budget deficit
7 months, 2 weeks ago

Gov. Gavin Newsom proposes painful cuts to close California’s growing budget deficit

Associated Press  

SACRAMENTO, Calif. — California’s budget deficit is at least $45 billion, a shortfall so large it prompted Gov. Gavin Newsom on Friday to propose painful spending cuts impacting immigrants, kindergarteners and low-income parents seeking child care in a state often lauded for having the world’s fifth-largest economy. Anthony Wright, executive director of the consumer advocacy group Health Access California, said …

What to know about Gov. Newsom’s plan to offset California’s $45-billion deficit
7 months, 2 weeks ago

What to know about Gov. Newsom’s plan to offset California’s $45-billion deficit

LA Times  

Faced with a $44.9-billion budget deficit, Gov. Newsom’s revised $288-billion budget proposal, announced Friday, projected California’s deficit to be $7 billion more than the shortfall his administration expected in January. We have to be accountable.” Newsom’s plan to close the deficit relies on $17.3 billion in savings from budget cuts he and lawmakers agreed to in April and using $4.2 …

Column: California’s budget relies on the richest taxpayers, and we’re paying the price
8 months ago

Column: California’s budget relies on the richest taxpayers, and we’re paying the price

LA Times  

Gavin Newsom discusses his proposed state budget for the 2024-25 fiscal year, during a news conference in Sacramento on Jan. 10. “I hated the subject with every bone in my body,” he recalls, “but I did it to prevent what’s happening today.” This is what we’re talking about: Based on the 2021 tax year, the top 1% of California earners …

California lawmakers vote to reduce deficit by $17 billion, but harder choices lie ahead
8 months, 1 week ago

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

Associated Press  

SACRAMENTO, Calif. — 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. 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 …

Newsom called it a ‘gimmick.’ Now he’s using the trick to lower California’s massive deficit
8 months, 1 week ago

Newsom called it a ‘gimmick.’ Now he’s using the trick to lower California’s massive deficit

LA Times  

Gavin Newsom discusses his proposed state budget for the 2024-2025 fiscal year, during a news conference in Sacramento in January. Gavin Newsom said he was doing away with a state budget “gimmick” one of his predecessors relied on to shave about $800 million off a deficit during the Great Recession. At least so far, Newsom and lawmakers are largely relying …

Newsom and Democratic lawmakers detail first California budget cuts totaling $17 billion
8 months, 2 weeks ago

Newsom and Democratic lawmakers detail first California budget cuts totaling $17 billion

LA Times  

Gavin Newsom and leaders of the state Senate and Assembly announced an agreement Thursday to cut $17 billion from the state budget in April, providing the first details of their plan to begin to tackle the state’s massive deficit. “There is still work to do as we finalize the budget and I look forward to the work ahead together to …

Newsom and Democrats announce a plan to reduce the enormous budget deficit. How? TBD
9 months ago

Newsom and Democrats announce a plan to reduce the enormous budget deficit. How? TBD

LA Times  

Gavin Newsom discusses his proposed state budget for the 2024-25 fiscal year during a news conference in Sacramento in January. Gavin Newsom and Democratic leaders of the state Senate and Assembly announced an agreement on Wednesday to take action in April to begin to dramatically reduce California’s historic shortfall. Newsom has urged the Legislature to take “early action” to begin …

Voters say California’s budget deficit is an ‘extremely serious’ problem, poll finds
11 months ago

Voters say California’s budget deficit is an ‘extremely serious’ problem, poll finds

LA Times  

Gavin Newsom discusses his proposed state budget for the 2024-2025 fiscal year in Sacramento. Half of California registered voters consider the state budget deficit an “extremely serious” problem, and 57% believe the state is headed in the wrong direction, according to a new UC Berkeley Institute of Governmental Studies poll co- The survey was conducted days before Gov. “Voters are …

California Gov. Newsom proposes some housing and climate cuts to balance $38 billion budget deficit
11 months, 1 week ago

California Gov. Newsom proposes some housing and climate cuts to balance $38 billion budget deficit

Associated Press  

SACRAMENTO, Calif. — California Gov. Gavin Newsom released details Wednesday of a new $291 billion state spending plan for the 2024-25 budget year that accounts for an estimated $37.9 billion deficit. It largely keeps intact a $1.5 billion program to help counties find housing for homeless people with serious mental illness and substance use disorders, but it delays $235 million …

Column: Newsom’s budget plan reflects his rosy view of the economy
11 months, 1 week ago

Column: Newsom’s budget plan reflects his rosy view of the economy

LA Times  

Gavin Newsom discusses his proposed state budget for the 2024-2025 fiscal year during a news conference in Sacramento on Wednesday. Gavin Newsom chose to take a relatively rosy view of the 2024 economy Wednesday in sending the Legislature a roughly $292-billion spending plan for the next fiscal year, which starts July 1. That meant Newsom and legislators didn’t know how …

California governor wants reserves and cuts to fix nearly $38B deficit, mostly sparing schools
11 months, 2 weeks ago

California governor wants reserves and cuts to fix nearly $38B deficit, mostly sparing schools

Associated Press  

SACRAMENTO, Calif. — California’s budget deficit is not as bad as previously thought, Gov. Gavin Newsom announced Wednesday, but it’s deep enough that it could delay a minimum wage increase for more than 400,000 health care workers and force spending cuts across various housing and climate programs. But he wants the Legislature to consider delaying a planned minimum wage increase …

How Newsom plans to fix California’s projected $37.9-billion budget deficit
11 months, 2 weeks ago

How Newsom plans to fix California’s projected $37.9-billion budget deficit

LA Times  

Gavin Newsom, discussing his proposed spending for the next fiscal year in Sacramento on Wednesday, wants to declare a budget emergency and get the Legislature’s permission to dip into the state’s reserves. Newsom’s new deficit estimate is more than double the shortfall he and lawmakers anticipated last June, a tacit admission of how badly the state underestimated the size and …

California faces record $68 billion budget deficit, nonpartisan legislative analyst says
1 year ago

California faces record $68 billion budget deficit, nonpartisan legislative analyst says

Associated Press  

SACRAMENTO, Calif. — California is facing a record $68 billion budget deficit, state officials announced Thursday, forcing hard choices for Democratic Gov. When combined with the economic slowdown California has been facing since last year, it leads to a predicted deficit of $68 billion, Legislative Analyst Gabriel Petek announced Thursday. The California Department of Finance estimates that wage increase will …

Opinion: More money, same problems: My fellow California Democrats keep repeating this mistake
1 year, 5 months ago

Opinion: More money, same problems: My fellow California Democrats keep repeating this mistake

LA Times  

The California Legislature is poised to begin its summer recess having passed the latest state budget. The bill was amended to require that affordable projects use only “skilled and trained” labor — code for union workers — even though state law already required such projects to pay union-level wages. Bills by state Sen. Scott Wiener and Assemblymember Buffy Wicks, for …

California’s new budget covers $32 billion deficit while extending tax credits for film industry
1 year, 5 months ago

California’s new budget covers $32 billion deficit while extending tax credits for film industry

Associated Press  

SACRAMENTO, Calif. — California lawmakers approved a $310.8 billion budget on Tuesday that closes a nearly $32 billion budget deficit while also extending a lucrative tax break for the state’s iconic film and television industry. The nation’s most populous state has had combined budget surpluses of well over $100 billion in the past few years, enabling the Democrats in charge …

Takeaways from the California budget deal between Newsom and Democratic lawmakers
1 year, 5 months ago

Takeaways from the California budget deal between Newsom and Democratic lawmakers

LA Times  

Gavin Newsom and California lawmakers agreed to a $310.8-billion budget deal that will include an expansion of Medi-Cal coverage and transforming parts of San Quentin State Prison into a rehabilitation center. The 2023-24 budget deal, which lawmakers will vote on in a series of bills this week, ends weeks of infighting among Democrats that began after the governor introduced a …

Governor says California’s budget deficit has grown to nearly $32 billion
1 year, 7 months ago

Governor says California’s budget deficit has grown to nearly $32 billion

Associated Press  

SACRAMENTO, Calif. — California’s budget deficit has soared to nearly $32 billion, Gov. Newsom, a Democrat in his second term, proposed no major tax increases for individuals or spending cuts across the state’s most important programs, including those impacting public education, health care and homelessness. Newsom’s plan would leave California with $37.2 billion in various savings accounts, money that he …

California budget: More for homelessness, less for climate
1 year, 11 months ago

California budget: More for homelessness, less for climate

Associated Press  

SACRAMENTO, Calif. — California Gov. Gavin Newsom on Tuesday proposed a $297 billion budget, prioritizing money to address homelessness and education while cutting some climate spending amid a projected $22.5 billion budget deficit. The proposed budget, which would take effect July 1, is about $9 billion less than the current fiscal year, when Newsom had a massive surplus. That would …

After years of surpluses, California headed toward a deficit
1 year, 11 months ago

After years of surpluses, California headed toward a deficit

Associated Press  

SACRAMENTO, Calif. — From a budget perspective, the first four years of California Gov. Tuesday, Newsom announced California likely won’t collect enough money in taxes to pay for all of its obligations, leaving a $22.5 billion hole in its budget. State Sen. Roger Niello, the top Republican on the state Senate’s budget-writing committee, said lawmakers need to focus on areas …

California Likely To Have $25 Billion Budget Deficit, Report Says
2 years, 1 month ago

California Likely To Have $25 Billion Budget Deficit, Report Says

Huff Post  

A highway along the beach in Santa Barbara, California. Alexander Spatari via Getty Images SACRAMENTO, Calif. — California will likely have a $25 billion budget deficit next year, state officials announced Wednesday, ending a run of historic surpluses and acting as a warning to other states about a potential recession. The report did not surprise Republicans, who said they have …

Report: California likely to have $25 billion budget deficit
2 years, 1 month ago

Report: California likely to have $25 billion budget deficit

Associated Press  

SACRAMENTO, Calif. — California will likely have a $25 billion budget deficit next year, state officials announced Wednesday, ending a run of historic surpluses and acting as a warning to other states about a potential recession. “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 …

California lawmakers OK budget; most taxpayers to get refund
2 years, 5 months ago

California lawmakers OK budget; most taxpayers to get refund

Associated Press  

SACRAMENTO, Calif. — California lawmakers on Wednesday approved a nearly $308 billion spending plan that includes money to cover abortions for women who can’t afford them and the health care costs for low-income adults living in the country illegally while sending cash payments to most taxpayers to help offset record-high gas prices. Instead, California’s revenues soared on the back of …

California surplus expected to hit unprecedented $97 billion under Newsom’s budget plan
2 years, 7 months ago

California surplus expected to hit unprecedented $97 billion under Newsom’s budget plan

LA Times  

The revised budget proposed by Gov. The governor’s budget asks lawmakers to devote billions of dollars to a raft of new items: an inflation relief package for Californians, more money to address dangerous drought and wildfire conditions, subsidies for low- and middle-income healthcare plans and the highest per-pupil school funding levels in the state’s history. The new budget, a revision …

California Senate leaders say budget surplus soars to $68B
2 years, 7 months ago

California Senate leaders say budget surplus soars to $68B

Associated Press  

SACRAMENTO, Calif. — California’s budget surplus has more than doubled since January to a staggering $68 billion, Senate Democrats said Thursday, prompting a flurry of new spending proposals from lawmakers that include giving $8 billion back to taxpayers in a move that highlights a disagreement with Gov. “We stand ready to act as soon as the Governor joins us in …

A huge California budget surplus will test legal spending limit, analysts warn
3 years, 1 month ago

A huge California budget surplus will test legal spending limit, analysts warn

LA Times  

California lawmakers will have to abide by the state’s constitutional spending limit when they decide how to divvy up a towering $31-billion tax surplus next year. California lawmakers should take early action next year on how to implement the state’s constitutional spending limit, an analysts’ report recommended Wednesday, pointing out that the longstanding law will dictate how to divvy up …

Senate Democrats reach $3.5 trillion budget agreement
3 years, 5 months ago

Senate Democrats reach $3.5 trillion budget agreement

Associated Press  

WASHINGTON — Senate Democrats announced late Tuesday that they’d reached a budget agreement envisioning spending an enormous $3.5 trillion over the coming decade, paving the way for their drive to pour federal resources into climate change, health care and family-service programs sought by President Joe Biden. We’re going to get this done for the sake of making average Americans’ lives …

Newsom, lawmakers reach agreement on spending tax windfall in $262.6-billion state budget
3 years, 5 months ago

Newsom, lawmakers reach agreement on spending tax windfall in $262.6-billion state budget

LA Times  

Gavin Newsom, flanked by Assembly Speaker Anthony Rendon and Senate President Pro Tem Toni Atkins in 2019, who have come to agreement on a budget plan for the fiscal year that begins July 1. Gavin Newsom and Democratic leaders of the California Legislature reached an agreement Friday on a $262.6-billion state budget, divvying up a towering windfall of tax revenue …

California governor builds big budget plan on one-time cash
3 years, 7 months ago

California governor builds big budget plan on one-time cash

Associated Press  

SACRAMENTO, Calif. — Gov. Gavin Newsom’s budget plan would have California pay to send every 4-year-old to kindergarten, give broke college students a place to live, put more homeless people in hotel rooms, provide health insurance for older adults living in the country illegally, start a new polytechnic university, wipe out delinquent traffic tickets for poor people and give cash …

California Senate proposes to spend $3.4 billion on drought
3 years, 7 months ago

California Senate proposes to spend $3.4 billion on drought

Associated Press  

SACRAMENTO, Calif. — Mired in yet another drought that threatens drinking water, endangered species of fish and the state’s massive agriculture industry, Democrats in the California Senate on Thursday detailed a $3.4 billion proposal designed to gird the state for a new crisis on the heels of a deadly and disruptive pandemic. “We’ve been working with them to identify noncontroversial …

California could see a $26-billion windfall followed by growing deficits, analysts say
4 years, 1 month ago

California could see a $26-billion windfall followed by growing deficits, analysts say

LA Times  

California’s state budget faces a dramatic boom-and-bust period over the next four years, analysts said Wednesday, a roller-coaster period that could begin with a $26-billion tax windfall and later plunge to a projected deficit of $17.5 billion by the middle of 2025. Gavin Newsom crafted a state budget in June, the large supply of extra cash — equal to almost …

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