Please ensure Javascript is enabled for purposes of website accessibility
Newsom, Lawmakers Agree How to Close Budget Deficit
gvw_ap_news
By Associated Press
Published 4 years ago on
June 22, 2020

Share

SACRAMENTO — Gov. Gavin Newsom and the Democratic state Legislature have agreed to a state spending plan that avoids billions of dollars in permanent cuts to public schools and health care programs but imposes pay cuts to state workers and other programs to cover an estimated $54.3 billion budget deficit brought on by the coronavirus pandemic.

The agreement announced Monday does not include Newsom’s proposed permanent cuts to public schools and health care programs, which would have made fewer low-income older adults eligible for government funded health insurance and eliminated programs aimed at keeping people out of nursing homes.
The agreement announced Monday does not include Newsom’s proposed permanent cuts to public schools and health care programs, which would have made fewer low-income older adults eligible for government funded health insurance and eliminated programs aimed at keeping people out of nursing homes.
Instead, the state will delay about $12 billion in payments to public schools to future budget years. This gives school districts the authority to go ahead and spend the money — either by borrowing or pulling from their reserves — and the state will pay them back later.
Plus, schools will get $4.4 billion in federal funding to help make help students who are learning to speak English or are low-income or in the foster system. They will also get an extra $1.1 billion in federal money to help with reopening in the fall.
The agreement essentially keeps public school funding at the same level it was in the previous year. By law, this would allow districts to lay off teachers and other staff to balance their budgets. But the agreement includes language protecting teachers and some other school employees from layoffs for the next year.
“School districts should be feeling a major sigh of relief in avoiding what was going to be the largest cut to public schools ever in a single year,” said Kevin Gordon, a lobbyist who represents many of the state’s public school districts.
The deal avoids cuts to health care and other social services programs for one year. But it gives Newsom the authority suspend some of those programs on July 1, 2021, if the state’s revenues have not improved.
The Legislature agreed to Newsom’s proposed $2.8 billion worth of pay cuts to state workers. Some bargaining units have already agreed to furloughs, or unpaid days off. But the agreement announced Monday empowers Newsom to suspend scheduled pay raises and impose up to two furlough days per month to any public union that does not have a collectively bargained agreement in place by July 1.

The Spending Plan Is Likely to Change in August

Details of the budget agreement were not immediately released, but were confirmed by sources with knowledge of the deal who were not authorized to speak publicly about it.

“School districts should be feeling a major sigh of relief in avoiding what was going to be the largest cut to public schools ever in a single year.” — Kevin Gordon, a lobbyist who represents many of the state’s public school districts
A joint statement from Newsom, Senate President Pro Tempore Toni Atkins and Assembly Speaker Anthony Rendon says the budget agreement “protects core services — education, health care, social safety net and emergency preparedness and response.”
But the spending plan is likely to change in August, once state officials have a better idea how much money they will have to spend. State officials moved the state’s tax filing deadline from April 15 to July 15 this year because of the coronavirus, making it hard to predict how much money the state will have.
“This budget required some tough decisions and more work remains ahead,” the statement said. “But they were necessary steps for keeping California on firm fiscal footing while we continue to meet the COVID-19 challenge.”
In January, California leaders had been preparing for a multi-billion dollar budget surplus. But that changed in March when Newsom issued a statewide stay-at-home order that forced many businesses to close and put millions of people out of work.
The state’s unemployment rate was 16.3% in May — the highest since the Great Depression — and California has paid more than $30 billion in unemployment benefits since the start of the coronavirus pandemic. The governor’s office predicts California’s revenue will fall by $41 billion at the same time the state will need to spend billions of dollars more to respond to the virus and handle higher enrollment in government assistance programs such as Medicaid.
The spending plan proposes to close that deficit by pulling money from the state’s reserves, borrowing from some internal funds, cutting spending, and some temporary tax increases on businesses that will bring in an estimated $4.4 billion per year.

DON'T MISS

From Blue Cheese to Bacon: Peanut Butter Pairings That Will Shock You

DON'T MISS

Challengers Seek Seats on Tulare County Irrigation District Boards

DON'T MISS

Shy Pup Finds Hope with Foster Family, Evasion from Euthanasia

DON'T MISS

Does Dill Have Magical Powers? What People Once Believed Food Could Do

DON'T MISS

Let’s Keep Innovative Partnerships Crucial to Combating Climate Change: Fresno Dairy Manager

DON'T MISS

Immediate Threat: Mussel Invades California’s Delta, First Time in North America

DON'T MISS

Two-Time Cy Young Winner Blake Snell Opts Out of Contract with Giants

DON'T MISS

No Matter the Outcome, We Are the True Losers of This Election

DON'T MISS

Russia’s Swift March Forward in Ukraine’s East

DON'T MISS

Rapper Young Thug Is a Free Man. Here Are Things to Know About His Plea.

UP NEXT

Lyft Pays $2.1 Million to Settle Case Alleging the Ride-Hailing Service Deceived Drivers

UP NEXT

Southern California County Official Pleads Guilty to Bribery Charge in COVID Funds Scheme

UP NEXT

Visalia Rollerblader Suffered Major Injuries After Being Struck by Vehicle

UP NEXT

Fresno County Man Indicted for Possessing Stolen Guns

UP NEXT

Anti-Semitic Incident at Oakland Cafe Raises Concerns About Rising Intolerance

UP NEXT

Schwarzenegger Endorses Harris, Warns Against Another Trump Term

UP NEXT

Will Noncitizens Be Able to Vote? This California City Will Decide Their Fate

UP NEXT

California Voters Consider Controversial Vacation Homes Tax in Iconic Lake Tahoe Area

UP NEXT

Los Angeles Sees Bus Burned, Store Thefts and Rowdy Crowds After Dodgers Win World Series

UP NEXT

On Elon Musk’s X, Dems Are an Endangered Species While GOP Goes Viral

Does Dill Have Magical Powers? What People Once Believed Food Could Do

1 hour ago

Let’s Keep Innovative Partnerships Crucial to Combating Climate Change: Fresno Dairy Manager

2 hours ago

Immediate Threat: Mussel Invades California’s Delta, First Time in North America

14 hours ago

Two-Time Cy Young Winner Blake Snell Opts Out of Contract with Giants

15 hours ago

No Matter the Outcome, We Are the True Losers of This Election

15 hours ago

Russia’s Swift March Forward in Ukraine’s East

15 hours ago

Rapper Young Thug Is a Free Man. Here Are Things to Know About His Plea.

15 hours ago

AMOR Wellness Trunk-or-Treat Brings 700 Mendota Residents Together for Halloween Fun

15 hours ago

What Kind of Trouble Is Miguel Arias Trying to Stir Up This Time?

15 hours ago

MrBeast Probe Ends With Some Employees Fired but Finds No Proof of Sexual Misconduct Allegations

16 hours ago

From Blue Cheese to Bacon: Peanut Butter Pairings That Will Shock You

Peanut butter is a childhood staple for many in the United States. Whether it’s a classic PB&J sandwich, a fluffernutter, cookies ...

3 mins ago

3 mins ago

From Blue Cheese to Bacon: Peanut Butter Pairings That Will Shock You

4 mins ago

Challengers Seek Seats on Tulare County Irrigation District Boards

18 mins ago

Shy Pup Finds Hope with Foster Family, Evasion from Euthanasia

1 hour ago

Does Dill Have Magical Powers? What People Once Believed Food Could Do

2 hours ago

Let’s Keep Innovative Partnerships Crucial to Combating Climate Change: Fresno Dairy Manager

14 hours ago

Immediate Threat: Mussel Invades California’s Delta, First Time in North America

15 hours ago

Two-Time Cy Young Winner Blake Snell Opts Out of Contract with Giants

15 hours ago

No Matter the Outcome, We Are the True Losers of This Election

Search

Send this to a friend