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.
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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