California has a budget deficit of $27.6 billion, Gov. Gavin Newsom announced Friday - a gap so wide that he's proposing eliminating 10,000 vacant state jobs and cutting spending across 260 state programs.
California has a budget deficit of $27.6 billion, Gov. Gavin Newsom announced Friday — a gap so wide that he's proposing eliminating 10,000 vacant state jobs and cutting spending across 260 state programs.
Continuing cuts would save another $81 million by closing housing units with 4,600 beds across 13 state prisons, and remove $300 million in pandemic-related help for state and local public health departments. Ongoing spending for a scholarship program for middle class college students pursuing a teaching credential would be cut by $510 million. He also wants to suspend the widely used net operating loss tax deduction for businesses.
This is the second year in a row the nation’s most populous state is facing a multi-billion dollar shortfall. State revenues have continued to fall amid increasing inflation and a slow-down in the state’s normally robust technology industry. Through the end of April, state tax collections from its three biggest sources — personal income, corporations and sales — dropped more than $6 billion below the previous estimate.
Democratic legislators applauded Newsom's effort to deal with multiple years of deficits and vowed to protect spending for social safety net fundings and classrooms. In January, Newsom floated the possibility of delaying a minimum wage increase for health care workers that Newsom signed into law to much fanfare just last year. He still plans that delay and said Friday that negotiations on the specifics are ongoing.
Last year, their predictions were way off after a series of destructive storms in January 2023 prompted lengthy delays in tax filing deadlines. Instead of filing their taxes in April, most Californians could wait until November. Lawmakers still had to pass a budget by June, despite not knowing how much money they had.
Budget Gavin Newsom Deficit Jobs Vacant
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Newsom says state has $27 billion budget shortfall, but it can be balanced without raising taxesLawmakers in Sacramento have until June 15 to pass a budget or they won’t get paid
Read more »
Newsom eyes $1 billion in cuts to affordable housing programsTo balance $27 billion shortfall, the state could chop funds for homelessness housing and office conversions.
Read more »
They were wrongfully convicted as teens. Now L.A. County is paying them $24 millionL.A. County will pay $27 million to settle shooting, wrongful conviction lawsuits against Sheriff’s Department
Read more »
'Obscene': BP Has Paid Out $27 Billion to Shareholders Since Russia Invaded UkraineOlivia Rosane is a staff writer for Common Dreams.
Read more »
Silver Price Forecast: XAG/USD holds gains above $27 on Fed rate-cut optimismSilver price (XAG/USD) falls slightly from weekly high of $27.50 but manages a firm-footing above the crucial support of $27.00 in Tuesday’s late European session.
Read more »
7 California Lottery players win over $27 million combinedSeven lucky players across California just won more than $27 million combined thank you to some lucky lottery scratchers.
Read more »