Gov. Gavin Newsom’s proposed budget would cut funding for coastal resilience projects almost in half, eliminating more than half a billion dollars of state funds this year that would help protect the coast against rising seas and climate change.
The deficit, while unsurprising, could signal the end of a decade’s worth of economic growth in the nation’s most populous state.
California faces a projected deficit next year even if the U.S. avoids a recession. Despite the expected shortfall, policymakers say they’ll maintain spending on social programs, though advocates are calling for more.
The projected deficit will force some painful spending decisions, including possibly delaying an ambitious program to clean up homeless encampments across the state.
There’s now an 80% chance California will be about $8 billion short when its fiscal year ends next summer, according to the nonpartisan Legislative Analyst’s Office.
Californians who don’t file taxes—because they don’t earn enough to owe any—won’t receive the new round of state payments. That includes some seniors and disabled people, as well as some of the lowest-income adults.
Newsom signed the $307.9 billion budget that pledges to make all low-income adults eligible for the state’s Medicaid program by 2024 regardless of their immigration status.
Democrats who control California’s government chose to send cash to taxpayers instead of suspending the gas tax as Republicans wanted.
The spending plan includes expanded health care for immigrants and low-income residents, giving taxpayers an inflation refund, and helping more women access abortion care.
Beating a Wednesday deadline, Democratic legislators pushed through a plan to spend the record California budget surplus, but key negotiations remain with Gov. Gavin Newsom.
