California’s budget deficit is almost $32 billion.

California Governor Gavin Newsom Announces $32 Billion Budget Deficit

California Governor Gavin Newsom recently announced that the state’s budget deficit has reached nearly $32 billion, which is $10 billion higher than what he had previously stated earlier in 2023. Despite the staggering deficit, Newsom has proposed a new plan that he hopes will cover the shortfall without any major tax increases or spending cuts in important programs such as public education, healthcare, and homelessness.

The Plan

Newsom’s new proposed plan would cut spending by about $10.6 billion and cover the rest of the deficit through borrowing, delaying certain spending, and shifting certain expenses to different sources. However, the plan would cut around $700 million in funding for nonprofits working on affordable housing to address the state’s housing crisis, which has received criticism from advocacy groups.

The Future

The new plan would balance the budget for 2023, but it would also place the state in a deficit in the future. Under Newsom’s new plan, the deficit would be at $5 billion in 2024 and rise to $14 billion by 2027. Newsom has faced criticism for his overspending and being fiscally irresponsible without planning ahead. The state’s progressive tax code is also under fire for being dependent on the wealthy residents of the state.

Reaction

Republican Assembly member Vince Fong criticized the governor for overspending with no regard for the future, while Republican Assembly Leader James Gallagher criticized Newsom’s proposed cuts to the state’s drought programs. The new budget proposal is now awaiting approval from the Democrat-controlled state legislature.

Despite the challenges, Newsom remains optimistic and hopes to take care of the most vulnerable and needy while maintaining prudence. Stay informed and receive breaking news blasts directly to your inbox for free by subscribing here.

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