Last Week Gov. Gavin Newsom delivered sobering news to many groups that rely on state funding, proposing billions in budget cuts to ongoing programs.
That process is scheduled to unfold after floor sessions with about 530 bills in the Assembly suspense file, and about 250 in the Senate’s. The new Assembly and Senate appropriations committee chairpersons both suggest fewer bills will get through because of the state’s financial woes.
The revised budget proposed by Newsom will be sliced and diced by legislators before they pass their own version June 15. This is followed by a 12-day stretch in which legislative leaders and the governor hammer out a final budget deal. The governor can then sign the budget, or veto some or all of it.
Newsom projects a budget shortfall of about $56 billion over the next two fiscal years, which he plans to balance through $30 billion in ongoing and one-time spending cuts. He is also proposing to use $12.2 billion in rainy-day funds and $900 million from a safety net reserve across those two years.
Core programs and social services such as income assistance for elderly and disabled residents, and health coverage to low-income undocumented immigrants will remain mostly untouched. Newsom also assured that there will be “no new taxes.”
Newsom proposes wiping out a total of $325 million from the state’s Multifamily Housing Program. He wants to slash $152 million from a state program for first-time homebuyers and $260 million from the Homeless Housing, Assistance and Prevention program.
The governor has signaled that he proposes not to expand the state’s key financial aid program, Cal Grant, to more students. Newsom also proposes a $510 million cut to another financial aid program that serves more than 300,000 students.
Since the start of his administration, Newsom has moved to close four prisons, which he said will save the state $3.4 billion by 2027. And while analysts say $1 billion more could be saved if as many as five more prisons closed, Newsom is opting to take smaller steps as part of his budget plan. Instead, he proposes the state’s corrections department to shutter 46 housing blocks inside 13 state prisons, which will save about $80 million.
By CalMatters
