Newsom announces budget cuts to tackle California's $27.6 billion deficit

July 2024 · 3 minute read

California Gov. Gavin Newsom announced in a news conference Friday his plans to cut state funding to stop the state's growing deficit.

This is a part of his revised 2024-2025 budget plan.

He said the approach they are taking this time around is a little different than they have in years past. They are not looking at the budget year alone, but the next two years to tackle and control deficits, reserves and surpluses.

Critics say it's a bad idea because the numbers aren't adding up in the proposal.

According to Newsom, the state's deficit sits at $27.6 billion as of right now. He said he is making state budget cuts on where money is being spent to get the state's spending under control.

I prefer not to make this cut. These are programs, propositions I've longed advanced, many of them," Newsom said. "None of this is work you enjoy doing, but you got to do it."

Newsom said the reason behind the deep spending cuts is "we have to be responsible, accountable; we have to balance the budget."

He released his plans on ways to balance out the budget. It includes cutting 8% of state operations and getting rid of nearly 10,000 vacant state jobs.

He said this will reduce non-essential spending without raising taxes and will improve government efficiency.

Susan Shelley,with the Howard Jarvis Taxpayers Association out of Sacramento said they also want to make sure tax money is going where it is supposed to.

KMPH asked, "Would you say right now, how we are in current times, the money is being spent well?"

Shelley responded, "If the money was being spent well, we would not have gone from going from 100,000,000 surplus to being in deficit."

State Republicans aren't too happy with the proposal. In the following statements you find their reactions:

Sen. Roger Niello, R-Fair Oaks, Vice Chair of the Senate Budget & Fiscal Review Committee: "At first glance, as I’ve heard kids say these days, the math is not mathing."

CAGOP: "Gavin Newsom has been utterly reckless when it comes to our state's finances. Not only are we suffering from a democrat-inflicted record budget deficit, but democrats managed to spend their way to putting California atop all the wrong lists in the process – highest gas prices, highest illiteracy rate, highest unemployment rate, highest poverty rate, largest homeless population."

Vince Fong, R-Central Valley, Vice Chair of the Assembly Budget Committee: "Californians are tired of paying more and getting less. This budget proposal only places more unsustainable costs on hardworking taxpayers.”

Newsom mentioned he is not prepared to increase taxes as the state has among the highest tax rates in the U.S.

But he did blame the drop in "corporate tax collections" as one of the reasons behind the deficits.

"I think we have to hold their feet to the fire on how they are spending the money. They already take from Californians, which is very high," Shelley said.

Lawmakers have until June 15 to pass the balance budget. The new fiscal year begins on July 1.

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