Newsom says state has $27 billion budget shortfall, but it can be balanced without raising taxes

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Newsom says state has $27 billion budget shortfall, but it can be balanced without raising taxes
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Lawmakers in Sacramento have until June 15 to pass a budget or they won’t get paid

California’s state budget has a $27.6 billion deficit, but it can be balanced without new taxes or major cuts to core programs, Gov. Gavin Newsom said Friday.

Republicans, who are in the minority in both the Assembly and Senate in Sacramento, criticized the proposal, and generally called for more spending cuts. “It’s boom or bust,” said Sanjay Varshney, a professor of finance at Sacramento State University. “The top 1% of earners account for almost half the budget. So what happens to the 1% has a major impact on the state budget.”

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