LordRunar/iStock
Governor Newsom is laying out his revised budget for the state legislature to consider. Newsom says he’s going to look at things differently so as to tackle the problem of a $27-point-six billion dollar budget deficit. Newsom proposes cutting programs and initiatives and dipping into reserves, which he says is the responsible way to eliminate the deficit and achieve a surplus in the first fiscal year. A downturn in the stock market in 2022 hit capital gains, while high inflation pinched the housing market and the tech industry. That and other losses hit the state hard, so now Newsom says California has to live within its means.
Meanwhile, GOP lawmakers are slamming Governor Newsom’s updated state spending plan. Republican State Senator Roger Niello, vice chair of the Senate Budget Committee, says Newsom’s revise is still “gimmicky.” Niello has repeatedly criticized the budget process, citing a lack of transparency. Newsom’s latest proposal now kicks off a month of negotiations. The legislature must pass a balanced budget by June 15th and the new fiscal year starts July 1st.