California’s $68 billion deficit: Newsom’s Disaster?
When preparing the 2024 state budget, Gov. Gavin Newsom will have to find out how to cover a $68 billion budget disparity.
According to the Legislative Analyst Office, the state legislature’s independent fiscal and policy adviser [www.lao.ca.gov], Newsom should consider declaring a budget emergency in order to use the state’s rainy-day reserve. According to the forecast, California might face significant budget cuts by next summer, when the state’s new spending plan is due. Let’s get one thing clear. Newsom has been and will continue to be a disaster for the state of California.
State leaders have various instruments at their disposal to handle the crisis, including $37.8 billion in reserves. According to the research, state leaders should consider cutting billions from education and suspending the use of money meant but not yet spent on one-time activities such as those relating to the environment and transportation.
One such assemblyman, who recently took the helm of the Assembly’s budget committee, stated that “the goal here is to avoid cuts, particularly to safety net services for our most vulnerable, which is the absolute last thing that anybody wants to do,” adding, “We’re unfortunately in a position this year where we’re going to have to say no to a lot of things.”
Let us say no to unnecessary spending!!!
The revenue loss is unprecedented, as typical budgets do not account for significant changes in revenue from the previous year. The office warned that the economic downturn could last until next year. It is difficult to predict if the recent decline will persist. The odds, however, do not appear to be in the state’s favor.
“Despite all warnings that it was unsustainable, California’s tax-and-spend majority increased state spending by $116 billion over the last six years, nearly doubling the general fund budget in that short time,” said one Republican State Senator who chairs the Senate’s budget committee.
“Republicans warned Democrats that this level of spending would lead to larger deficits, and it would be more prudent to show restraint,” he said. Regrettably, the majority party disregarded those warnings.”
The $68 billion sum would be the state’s highest deficit in history. And he wishes to run for President.
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