Newsom shuffling the monies to cover ballooning deficit

Gov. Gavin Newsom says his plan to cover a budget shortfall that has grown by $9 billion protects investments in education, health care and housing. But it also relies on more borrowing and doesn’t include asks for child care and public transit.

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California’s estimated budget deficit has grown by $9 billion since January, Gov. Gavin Newsom announced today, though the governor downplayed the severity of its potential impact on critical government services and programs.

During a press conference at the California Natural Resources Agency in downtown Sacramento, Newsom unveiled a revised spending plan that will rely on some additional fiscal maneuvers — including shifting funding sources and internal borrowing — to address a projected $31.5 billion gap in the 2023-24 state budget.

“We have a $31.5 billion challenge, which is well within the margin of expectation and well within our capacity to address,” Newsom said.

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