How Newsom plans to fix California’s projected $37.9-billion budget deficit
LA TimesGavin 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 scope of the budget hole, and marks substantial disagreement within California government about the depth of the financial problem. Delaying increases for universities Newsom proposes deferring a 5% budget increase for the University of California and California State University, and providing two years’ worth of increases next year. Cuts to social services Newsom’s budget proposal includes backtracking or delaying planned funding for numerous programs serving vulnerable Californians.