Gov. Gavin Newsom revised California’s budget down to $203 billion Thursday as the coronavirus pandemic batters the state with record job losses and shortfalls.
In charting out a plan to fill a huge deficit, the Democratic governor strategically tied much of the cuts to public health, public safety, and public schools to additional federal stimulus aid.
The Newsom administration projects 24.5% unemployment, a 21% decline in new housing permits, and a nearly 9% drop in California personal income for the fiscal year starting July 1.
Newsom’s proposals include:
He said the cuts, while painful, don’t compare to the suffering many California families are experiencing.
California is pinning a lot on Washington, D.C. Newsom said despite the state’s savings, the projected deficit is three and a half times a $16 billion rainy day fund and nearly 37% of the state’s general fund.
