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 much tax revenue to expect before passing the current budget in June. One long-sought reform that has never gained traction is to broaden the tax base: Reduce California’s highest-in-the-nation 13.3% income tax rate and extend the sales tax to services, such as legal and accounting. Anyway, Newsom said, he prefers to keep California’s very progressive income tax system and simply save more money in good times to use in bad times.

Tax Budget California Spending State Billion Legislature Newsom Governor Sacramento  spending  governor  billion  column  economy  tax  state  plan  office  budget  newsoms  revenue  newsom  legislative  view  rosy  reflects

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 …

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 …

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

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 …

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 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 …

As deficit estimate hits $68 billion, Newsom seeks ‘major changes’ to healthcare wage law
1 year ago

As deficit estimate hits $68 billion, Newsom seeks ‘major changes’ to healthcare wage law

LA Times  

With California facing an expected $68-billion budget deficit, Gov. Gavin Newsom is seeking “major reforms” to pull funding from a costly plan next year to begin raising the statewide minimum wage for healthcare workers to $25 an hour. Gabriel Petek, the office’s legislative analyst, said the report lays out a “serious budget problem.” California’s progressive tax structure already makes the …

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 …

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 …

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 …

Newsom signs state budget bills, with gas refunds to 17.5 million California taxpayers
2 years, 5 months ago

Newsom signs state budget bills, with gas refunds to 17.5 million California taxpayers

LA Times  

Gavin Newsom on Thursday signed into law key elements of a new $307.9-billion state budget, a spending plan centered on gas refunds for 17.5 million taxpayers to soften the sting of high fuel prices and the cost of living. The package includes $9.5 billion in gas refunds, $1.4 billion in utility payment assistance, expanded tax credits, $250 million for paid …

Abortion, inflation and crime: How Newsom would spend record-setting California surplus
2 years, 7 months ago

Abortion, inflation and crime: How Newsom would spend record-setting California surplus

LA Times  

Gavin Newsom speaks at a news conference with workers and volunteers at a Planned Parenthood office near downtown Los Angeles. $18.1 billion to offset high inflation Newsom’s budget would set aside almost 19% of the tax surplus for immediate cash rebates and a variety of assistance programs for low-income residents. $128 billion for public schools Funding for K-12 education and …

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 …

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 …

Column: Newsom is admonished for his big-spending budget by Sacramento’s legislative analyst
3 years, 7 months ago

Column: Newsom is admonished for his big-spending budget by Sacramento’s legislative analyst

LA Times  

Gavin Newsom answers questions from reporters after delivering his revised budget proposal at a May 14 news conference in Sacramento. Ann Hollingshead, a principal fiscal and policy analyst, delved into Newsom’s revised spending plan of nearly $268 billion for the next fiscal year — representing a 33% increase over the current budget enacted last June — and issued a critical …

With $76B surplus, California proposes rebates for millions
3 years, 7 months ago

With $76B surplus, California proposes rebates for millions

Associated Press  

SACRAMENTO, Calif. — Aided by an astonishing nearly $76 billion budget surplus, California Gov. “Direct stimulus checks going into people’s pockets and direct relief — that’s meaningful,” Newsom said from a community organization in a disadvantaged Oakland neighborhood. Officials from the state Department of Finance said multiple rounds of federal coronavirus bills boosted the state’s budget by putting money back …

Essential Politics: Newsom’s $100-billion budget plan
3 years, 7 months ago

Essential Politics: Newsom’s $100-billion budget plan

LA Times  

This is the May 10, 2021, edition of the Essential Politics newsletter. Gavin Newsom will roll out this week what his advisors say is a $100-billion “California Comeback Plan,” beginning with $8 billion in new cash payments to millions of the state’s residents and their families. “We’re picking up where 13 left off!” Voters resoundingly agreed that November — in …

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 …

Discover Related