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 and shortfalls in the future. Despite the progress made in managing changing budget conditions, state leaders need a freer hand when it comes to making meaningful investments, raising revenues and adding to California’s reserves. State contributions to California’s defined-benefit pension plans — which guarantee lifelong salaries and benefits to public employees regardless of the state’s ability to actually pay — amounted to $26 billion in 2022. Even if these plans were more generous than private sector’s, they would save the state considerable money, prove desirable to many public employees and stop the defined-benefit Ponzi scheme.

Leaders Spending Public Plans Californians Gavin Newsom Reserves State Budget Budget Cuts California Control Chris Hoene Cuts Tax Joshua Rauh  plans  boomandbust  california  control  reserves  spending  public  leaders  state  budget  cuts  tax

History of this topic

After reducing deficit, Newsom proposals bring extra costs to California
1 week, 6 days ago

After reducing deficit, Newsom proposals bring extra costs to California

LA Times  

Gavin Newsom has proposed new spending as the state faces another budget deficit. Gabriel said the Assembly will “carefully consider and vet” the governor’s proposals, which lawmakers will get a better look at when Newsom unveils his budget plan in January. Newsom’s new spending proposals With Hollywood experiencing a massive production downturn, Newsom recently proposed a “historic expansion” of California’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 …

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 …

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 …

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, 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 …

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

The Independent  

The latest headlines from our reporters across the US sent straight to your inbox each weekday Your briefing on the latest headlines from across the US Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Gavin Newsom released details Wednesday of …

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 …

Newsom cuts $2.9 billion from California climate programs, delays an additional $1.9 billion
11 months, 1 week ago

Newsom cuts $2.9 billion from California climate programs, delays an additional $1.9 billion

LA Times  

Investments geared toward combating climate change and transitioning away from fossil fuels are among the items on the chopping block as California Gov. Many of the large cuts “align directly with the climate stressors that have caused so much harm in the state of California, and that’s just beyond concerning,” he said. “Notably, while the budget proposals for transportation contain …

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 …

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, …

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 …

What you need to know about Newsom’s plan to offset California’s $31.5-billion deficit
1 year, 7 months ago

What you need to know about Newsom’s plan to offset California’s $31.5-billion deficit

LA Times  

California’s estimated $31.5-billion budget deficit is forcing Gov. The governor’s $306.5-billion budget plan, which he detailed Friday when announcing his revised spending proposal, relies on money raised from bonds, taps into $450 million from the state’s safety-net reserve and renews a tax on managed care programs to support Medi-Cal while continuing plans to curtail increases for climate and transportation programs. …

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 …

Newsom proposes cuts to climate change programs amid cloudy economic outlook
1 year, 11 months ago

Newsom proposes cuts to climate change programs amid cloudy economic outlook

LA Times  

Gavin Newsom gives the inaugural address at the Capitol Mall on Friday in Sacramento after being sworn in for his second term. Gavin Newsom on Tuesday announced plans to reduce investments in the state’s move to zero-emission vehicles and delay funding for 20,000 new child-care slots as California transitions from a time of economic surplus to shortage. “That makes us …

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 …

Newsom feels pressure to show results for California in second term
2 years, 1 month ago

Newsom feels pressure to show results for California in second term

LA Times  

Gavin Newsom, accompanied by his wife, Jennifer Siebel Newsom, and their children in Sacramento, delivers remarks after winning his second term in office Tuesday. Speaking in what he’s dubbed the “California for All” conference room in the governor’s office, Newsom said his second term is about implementing and showing results. “I think the second term is always kind of about …

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 …

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 …

California needs to do more than just throw money at climate change. It must act
2 years, 11 months ago

California needs to do more than just throw money at climate change. It must act

LA Times  

For the second year in a row, California has been blessed with a massive budget surplus, and Gov. Combined with funds from last year’s state climate spending package, it would provide California with a total of $37 billion for climate-related initiatives over a six-year period. Newsom administration officials say the size of the spending package shows California’s actions are finally …

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, 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’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 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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