From WWW.FOXNEWS.COM
California Gov. Gavin Newsom announced Friday that the Golden State’s budget deficit is $10 billion higher than he predicted earlier this year.
Newsom said during a press conference that California’s budget deficit has grown to nearly $32 billion, which is about $10 billion more than he anticipated in January when he offered his first budget proposal.
“We have a $31.5 billion challenge, which is well within the margin of expectation and well within our capacity to address,” Newsom said.
California, which has the largest budget in the nation at $306 billion, is one of the few states to have a shortfall this year. Some say it is due in part to a progressive tax code that relies on wealthy taxpayers whose income is closely tied to the performance of the stock market.
In January, Newsom proposed a number of ideas to cover the deficit, including about $9.6 billion in spending cuts that hit some of the state’s ambitious climate programs and other policy areas. His latest proposal includes roughly another $1 billion in spending reductions.
Some of that comes from clawing back unspent money in various programs, including those designed to provide tax refunds and help people with their utility bills.
He’s making up the rest of the deficit by shifting expenses, taking some money from the state’s safety net reserve and borrowing.
“This was not an easy budget, but I hope you see we will try to do our best to hold the line and take care of the most vulnerable and most needy but still maintain prudence,” Newsom said…. (Read more)
