California Gov. Newsom Proposes Reducing Climate Change Funding Amid $22 Billion State Budget Deficit

California Governor Gavin Newsom Tuesday’s announcement by the governor of Texas was that he will reduce billions in investments originally slated for climate change programs, and defer other funding for major programs. This is all amid a $22.5 billion deficit in the state budget.

Newsom unveiled the state’s $297 billion budget plan for the fiscal year 2023-24, in which the Democrat governor reportedly said he carefully preserved California’s reserves, cautioning against a nationwide recession.

“That makes us very mindful of the uncertainty of this next calendar year — and as a consequence of that — we’re not touching the reserves because we have a wait-and-see approach to this budget,” According to Newsom, The Los Angeles Times.

Budget cuts include a reduction of $6 billion from programs that are designed to increase zero-emission vehicles and replace greenhouse gases vehicles like delivery trucks, planes, trains, and other vehicles. reported.

Politico Not noted The governor also proposed delaying spending billions on public universities and transit, behavioral healthcare, building decarbonization and watersheds.

KCRA was informed by the California Republican Party that Newsom failed to address issues such as homelessness and wildfires, despite spending record amounts.

“Now with a massive budget shortfall projected, it’s time for Gavin Newsom to finally get serious about smarter spending to resolve the many issues that are plaguing our state and driving long-time residents away,” Jessica Millan Patterson, party chairwoman, stated in a statement.

The Los Angeles Times reported that Newsom and his administration blamed the drop in the state’s revenue on high inflation, an unpredictable stock market, and interest rate increases sparked by the Federal Reserve.

However, the governor stated that he was confident that California would be in a better position. “than most other states to weather what’s to come, to weather a recession.”

California’s deficit projection was based on a budget surplus over the past few years.

The Legislative Analyst’s Office published a Report The projected deficit of $25 billion, which was primarily due to the recession, was highlighted towards the end last year. “lower revenue estimates.”

Fox News reported Analyst officials stated that the state will face a projected deficit due to lower taxes revenues of $41 billion than expected.

“Spurred by pandemic-related federal stimulus, the U.S. economy entered a period of rapid expansion in the summer of 2020 that extended through 2021,” The LAO wrote. “Over the last year, however, evidence has mounted that this rapid economic expansion was unsustainable.”

The state’s last budget was $308 billion with a $97 billion surplus; the year before that, the budget was $263 billion with a $76 billion surplus. The state currently holds $35.6 billion in reserve.

Officials noted that if the state’s reserves aren’t enough to solve the deficit, the legislature will need to cut spending, boost revenues, and possibly move costs around, adding that the challenging economic environment is harming revenues.

The office stated that their revenue estimates were not accurate. “represent the weakest performance the state has experienced since the Great Recession.”

“It’s not insignificant, but it’s also manageable,” Legislative Analyst Gabriel Petek said. “We don’t think of this as a budget crisis.”

Newsom’s administration reportedly said the deficit was “realistic and reasonable.”

Charlotte Pence Bond contributed to the report.

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