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 20% of all current-year spending out of California’s general fund — is a surprise, Legislative Analyst Gabriel Petek said. Instead, the state’s tax revenues have remained strong — in part, Petek said, because high-income residents have not suffered any notable setbacks and California’s budget relies heavily on those taxpayers. “The need for federal stimulus is still critical for a strong economic rebound, and to help California continue to meet some of our state’s most pressing needs, which includes enhancing unemployment benefits, providing relief for renters and mom-and-pop landlords, and supporting local governments and our schools,” Atkins said in a written statement.

Tax Budget Schools California Spending State Legislature Newsom Analysts Windfall Petek  spending  report  deficits  schools  state  growing  california  analysts  26billion  windfall  say  tax  states  lawmakers  followed  revenues  budget

History of this topic

Voters Back $52 Billion of State and Local Borrowing
1 month, 2 weeks ago

Voters Back $52 Billion of State and Local Borrowing

Bloomberg  

00:00 Which brings us to our money moment. U.S. voters approving about $52 billion of state and local government borrowing measures ranging from education improvements to a transportation referendum. Nick, I know that California kind of stole the headlines with a pair of $10 billion know statewide propositions, but give us a sense of what voters approved of. And it's …

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 …

Newsom, lawmakers use cuts, reserves and ‘fiscal emergency’ declaration to solve budget deficit
6 months ago

Newsom, lawmakers use cuts, reserves and ‘fiscal emergency’ declaration to solve budget deficit

LA Times  

Gavin Newsom and Democratic lawmakers struck a deal Saturday to make $16 billion in cuts, declare a statewide fiscal emergency and pull money from the state’s rainy-day reserves to balance a $46.8-billion budget deficit. “We’re making sure to preserve programs that serve millions of Californians, including key funding for education, health care, expanded behavioral health services and combating homelessness.” The …

Can California control its boom-and-bust budget?
6 months, 2 weeks 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 …

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, 2 weeks 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, 2 weeks 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 …

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 …

Newsom and Democratic lawmakers detail first California budget cuts totaling $17 billion
8 months, 3 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, 1 week 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 …

Column: Newsom’s budget plan reflects his rosy view of the economy
11 months, 2 weeks 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 …

Column: A massive borrowing binge is brewing in Sacramento
1 year, 4 months ago

Column: A massive borrowing binge is brewing in Sacramento

LA Times  

Left to their individual desires, California legislators would go on a massive borrowing binge. Here’s an example of the opposition bond backers will face when their proposals are debated in the Capitol next month and eventually hit the ballot: “Why is a bond — any bond — necessary?” asks Jon Coupal, president of the Howard Jarvis Taxpayers Assn., named after …

Budget troubles won’t change California Gov. Gavin Newsom’s goals for 2nd term, he tells AP
1 year, 5 months ago

Budget troubles won’t change California Gov. Gavin Newsom’s goals for 2nd term, he tells AP

Associated Press  

SACRAMENTO, Calif. — Throughout the various crises in California Gov. Gavin Newsom’s first term — devastating wildfires, the bankruptcy of the nation’s largest utility, the deadly COVID-19 pandemic — the state’s record-smashing budget surpluses were always there to smooth things over. Newsom told AP that California’s budget troubles won’t change his agenda or stop him from taking big policy swings, …

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 …

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 …

With potential recession looming, California estimates $25-billion deficit next year
2 years, 1 month ago

With potential recession looming, California estimates $25-billion deficit next year

LA Times  

Inside the California Capitol, lawmakers may soon be struggling with a projected $25-billion budget deficit. Driven by high inflation and the threat of a recession, the state faces a potential $25-billion budget deficit next year that could at minimum curb some recent spending increases for essential safety-net programs that help Californians most in need. “Using it to build up our …

California revenues decline amid economic worries
2 years, 1 month ago

California revenues decline amid economic worries

Associated Press  

SACRAMENTO, Calif. — The good times might soon be over for California’s government. “I think the state is far better positioned for a potential economic downturn this time around than it has been in contemporary history,” said Chris Hoene, executive director of the California Budget & Policy Center. Tech companies “going public” has been a reliable source of cash for …

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 …

After huge pandemic losses, governments see rapid rebound
2 years, 10 months ago

After huge pandemic losses, governments see rapid rebound

Associated Press  

State and local governments lost at least $117 billion of expected revenue early in the pandemic, according to an Associated Press analysis, but many are now awash in record amounts of money, boosted partly by federal aid. “The ultimate effect of the pandemic was a net positive,” said Stephen Parker, assistant city manager for the Los Angeles suburb of Upland, …

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 …

Newsom, lawmakers reach agreement on spending tax windfall in $262.6-billion state budget
3 years, 6 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 revenues soar as rich get richer during pandemic
3 years, 9 months ago

California revenues soar as rich get richer during pandemic

Associated Press  

SACRAMENTO, Calif. — At the end of 2020, California had lost a record 1.6 million jobs during the pandemic. “This isn’t a recession that was driven by economic failures, this is a recession driven by a global pandemic,” said Chris Hoene, executive director of the California Budget and Policy Center. A slew of California tech companies, led by Airbnb and …

California’s tax windfall is $15.5 billion, Newsom tells tech industry group
4 years ago

California’s tax windfall is $15.5 billion, Newsom tells tech industry group

LA Times  

Gavin Newsom’s upcoming state budget will assume California’s tax windfall is $15.5 billion, he said Tuesday during an event held by a technology industry trade group. The governor revealed the estimate in an online presentation during the annual state policy conference of Technet, said a source who attended the event but was not authorized to publicly discuss Newsom’s comments. Even …

California governor, lawmakers agree how to close deficit
4 years, 6 months ago

California governor, lawmakers agree how to close deficit

Associated Press  

SACRAMENTO, Calif. — California will make up its estimated $54.3 billion budget deficit in part by delaying payments to public schools and imposing pay cuts on state workers, according to an agreement announced Monday by Gov. The agreement avoids billions of dollars in permanent cuts to public schools and health care programs, including proposals from Newsom that would have made …

Discover Related