‘Very Volatile Moment’: Newsom Slashes Budget After Turning $98 Billion Surplus Into $22.5 Billion Deficit in Single Year

Democrats

In 2023, funding for climate change and mental healthcare will be cut

California Gov. Gavin Newsom. (Photo by Justin Sullivan/Getty Images). Susannah Luthi • January 10, 2023 5:05 pm

California Gov. Gavin Newsom (D.) revealed Tuesday that the state faces a $22.5 billion deficit in the coming fiscal year, a far cry from last year’s $98 billion surplus.

Newsom revealed the deficit in a speech he gave to unveil his budget for 2023-24, which includes $297billion in spending proposals. This $11 billion decrease compared to last year. The Democrat admitted that the state is struggling. “in a very volatile moment … of uncertainty,” He warned that this could escalate in the coming months.

The governor dismissed him “old narratives” Democrats are “profligate” We are unable to “managing budgets,” instead laying the blame on California’s dwindling tax base, which is now roughly half of what it was last year.

Newson has a history in dispensing politically beneficial cash. This was a very unusual speech. Newsom sent $600 to each Californian in stimulus checks, which arrived in mailboxes just before the 2021 recall vote. The governor spent $100 billion of his surplus last year on temporary spending to address homelessness, climate change, and other programs. 

Newsom’s second term is just five days old, and he’s already singing a different tune. Newsom announced a spending strategy. “delays,” including on mental health, preschool “inclusion” Climate programs, grants, and capital investment at the University of California. His budget also proposes using federal dollars to make up for reductions to the state’s much-touted climate initiatives. 

California public schools where students can learn Not well The funding will increase following the closing of the pandemic. Newsom is also maintaining billions in homelessness spending and won’t delay plans to roll out health coverage for illegal immigrants. 

“People are dying on the streets all across the state,” He stated. “The encampments, we’ve got to clean them up, we’ve got to take responsibility, more accountability, and more transparency. There’s never been more resources, ever, period, full stop, including with this budget.” The governor promised to not raise taxes to fund these programs and to pay the deficit.

Newsom will review his budget proposal in May before sending it to the legislature for approval. Speaking Tuesday, he pledged not to pull from the state’s rainy day fund in the interim, noting that the economic forecast could worsen in

*As an Amazon Associate I earn from qualifying purchases