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California Gov. Newsom, Legislators Find Way to Bridge Budget Deficit
An agreement was reached between California Governor Gavin Newsom and state legislative leaders this week on how to eliminate an estimated $54.3 billion budget deficit. The gap will be partly bridged by delaying $12 billion in payments to public schools and forcing state workers to take pay cuts that would add up to $2.8 billion.
The state would also borrow from some restricted funds that must be paid back, as well as make spending cuts to other programs and temporary tax increases on businesses in order to bring in $4.4 billion in new revenue.
Gov. Newsom, Senate President pro Tempore Toni G. Atkins and Assembly Speaker Anthony Rendon said in a joint statement: “The COVID-19 global pandemic has caused a sudden and dramatic change in our nation’s and state’s economic outlook – and has had a cascading effect on our state budget. In the face of these challenges, we have agreed on a budget that is balanced, responsible and protects core services – education, health care, social safety net and emergency preparedness and response. This budget also invests in California small businesses harmed by the pandemic.”
The agreement still must be approved by the legislature.
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Economy
