Please ensure Javascript is enabled for purposes of website accessibility
As Revenues Plummet, California Budget Cuts Billions
gvw_ap_news
By Associated Press
Published 5 years ago on
May 14, 2020

Share

SACRAMENTO — Reflecting the financial hit California is already seeing from the coronavirus pandemic, Gov. Gavin Newsom on Thursday proposed cutting $6.1 billion from a variety of programs in a state budget he says prioritizes public education, public health and public safety.

Newsom’s 2020-2021 budget estimates unemployment will climb to nearly 25 percent and overall tax revenues will drop by about a quarter, he said. It also calls for a 10% pay cut for all state workers.

“Nothing breaks my heart more than having to make budget cuts,” he said. “There’s a human being behind every single number.”

California’s financial downturn is cushioned by a $16 billion rainy day fund set aside during the good times. Newsom’s budget, which will now be negotiated with the state Legislature, calls for spending the rainy day fund down over the next three years, starting with roughly $8 billion in the upcoming year. He’s also tapping two other reserve funds for another $1 billion.

The $203 billion budget revision he proposed Thursday represents about 5% lower spending than the current year, despite a budget hole his administration pegged at $54.3 billion. That’s because many of the cuts come from planned expansions of safety net programs and social services he and other Democrats sought in the upcoming budget.

The 10% pay cut for state employees would save about $2.8 billion overall, budget documents said, though the reductions would not occur “if the federal government provides sufficient funding to restore them.” The state will seek the savings through collective bargaining with the unions that represent different workers, but the administration will “impose reductions if the state cannot reach an agreement.”

Spending on K-12 Education Will Fall by Nearly $7 Billion

Newsom said the pay cuts will also apply to him and his staff.

“We will find efficiency. You deserve a leaner government that’s more nimble, more effective and targets the needs of the most vulnerable,” Newsom said.

The budget decreases spending on K-12 education by nearly $7 billion compared to the 2019-2020 budget year. Newsom said billions more in cuts to schools can be staved off by tapping federal coronavirus funding and reducing some tax perks. He also calls for cuts to Medicaid payments by at least $280 million.

His ambitious plans to help local governments tackle homelessness also appeared to take a hit. Under the revised budget, he’ll rely more on federal than state money to help the homeless.

On Wednesday, Newsom said his revised budget would include more than $200 million to increase the state’s preparations for looming wildfires and other disasters, including hiring another 500 firefighters and 100 support personnel to help make up for the loss of dozens of inmate firefighters who were paroled to ease the risk of coronavirus outbreaks.

State officials have furloughed state workers during previous budget deficits and used tricks like paying state employees a day later to save money during the last major recession.

Newsom had proposed a $222.2 billion spending plan in January that included a nearly $6 billion surplus. But that changed in March, when he issued a mandatory, statewide stay-at-home order to slow the spread of the coronavirus.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Judge Rejects Claim That Sean ‘Diddy’ Combs Was Treated Differently Because of His Race

DON'T MISS

Rapper Tory Lanez Attacked at a California Prison as He Serves Time for Megan Thee Stallion Shooting

DON'T MISS

Grapevine Fire Forces Full Closure of Southbound I-5

DON'T MISS

Fresno’s New Economic Development Leader Has Boomtown Expertise

DON'T MISS

KMJ’s Ray Appleton Is Off the Air as He Deals With ‘Rare Condition’

DON'T MISS

Bakersfield Man Pleads Guilty to Aiming Laser at Sheriff’s Helicopter

DON'T MISS

Erika Sandoval Faces Life Sentence for Murder of Former Exeter Police Officer

DON'T MISS

US Car Prices Higher in April After Tariffs Hit

DON'T MISS

Fresno County School Boards Need Ethics Training: Grand Jury

DON'T MISS

Pentagon Halting Gender-Affirming Healthcare for Transgender Troops, Memo Says

UP NEXT

Trump Plans to Accept Luxury 747 From Qatar to Use as Air Force One

UP NEXT

Newsom Urges California Cities and Counties to Ban Homeless Encampments

UP NEXT

‘The Studio’ Knows the Real Reason Movies Are Bad

UP NEXT

India and Pakistan Agree to a Ceasefire After Their Worst Military Escalation in Decades

UP NEXT

Ukraine and Allies Urge Putin to Commit to a 30-Day Ceasefire or Face New Sanctions

UP NEXT

Israeli Airstrikes Kill 23 in Gaza as Outcry Over Aid Blockade Grows

UP NEXT

Experts Call Kennedy’s Plan to find Autism’s Cause Unrealistic

UP NEXT

Summer Movie Guide 2025: Here’s What’s Coming to Theaters and Streaming From May to August

UP NEXT

First At-Home Test Kit for Cervical Cancer Approved by the FDA, Company Says

UP NEXT

Leo XIV’s Service to Poor Propelled Him to Papacy, Cardinals Say

Fresno’s New Economic Development Leader Has Boomtown Expertise

54 minutes ago

KMJ’s Ray Appleton Is Off the Air as He Deals With ‘Rare Condition’

1 hour ago

Bakersfield Man Pleads Guilty to Aiming Laser at Sheriff’s Helicopter

2 hours ago

Erika Sandoval Faces Life Sentence for Murder of Former Exeter Police Officer

2 hours ago

US Car Prices Higher in April After Tariffs Hit

2 hours ago

Fresno County School Boards Need Ethics Training: Grand Jury

2 hours ago

Pentagon Halting Gender-Affirming Healthcare for Transgender Troops, Memo Says

2 hours ago

Fresno County Traffic Stop Leads to $250K Cocaine Bust

3 hours ago

Top Justice Department Official Is Now Also Acting Librarian of Congress

4 hours ago

Trump Tower Damascus? Syria Seeks to Charm US President for Sanctions Relief

4 hours ago

Judge Rejects Claim That Sean ‘Diddy’ Combs Was Treated Differently Because of His Race

NEW YORK — Sean “Diddy” Combs was not treated differently because of his race by prosecutors who brought racketeering and sex trafficking ch...

11 minutes ago

Sean 'Diddy' Combs, far left, looks on from the defense table with his attorneys, as a prospective juror, far right, answers questions posed by Judge Arun Subramanian, center, at Manhattan federal court, Monday, May 5, 2025, in New York. (Elizabeth Williams via AP)
11 minutes ago

Judge Rejects Claim That Sean ‘Diddy’ Combs Was Treated Differently Because of His Race

Singer Tory Lanez returns to the Clara Shortridge Foltz Criminal Justice Center for his trial, Dec. 13, 2022, in Los Angeles. (AP File)
15 minutes ago

Rapper Tory Lanez Attacked at a California Prison as He Serves Time for Megan Thee Stallion Shooting

A fire has shut down all southbound lanes of I-5 at Grapevine Road on Monday, May 12, 2025, prompting major traffic delays as crews work to extinguish the flames. (CHP)
25 minutes ago

Grapevine Fire Forces Full Closure of Southbound I-5

54 minutes ago

Fresno’s New Economic Development Leader Has Boomtown Expertise

1 hour ago

KMJ’s Ray Appleton Is Off the Air as He Deals With ‘Rare Condition’

photo of a green laser beam
2 hours ago

Bakersfield Man Pleads Guilty to Aiming Laser at Sheriff’s Helicopter

A Tulare County jury has convicted on Thursday, May 8. 2025, Erika Sandoval of first-degree murder in the 2015 shooting death of her ex-husband, former Exeter police officer Daniel Green. (Tulare County DA)
2 hours ago

Erika Sandoval Faces Life Sentence for Murder of Former Exeter Police Officer

2025 Buick Encore GX SUV's sit on the lot of a Buick GMC dealership in Detroit, Michigan, U.S., April 18, 2025. REUTERS/Rebecca Cook/File Photo
2 hours ago

US Car Prices Higher in April After Tariffs Hit

Help continue the work that gets you the news that matters most.

Search

Send this to a friend