Gov. Gavin Newsom has declared a budget emergency. The governor's office says the declaration clears the way for the Legislature to pass legislation allowing the state to draw from the $16.1 billion rainy day fund.
That will make additional funding available to ensure the supply of personal protective equipment and medical equipment, support funding in case of a potential hospital surge and provide services to vulnerable populations.
Earlier this year, the Governor projected the state would have a $6 billion budget surplus, but the coronavirus pandemic and shelter-in-place orders shifted the economic outlook dramatically. Newsom now says the state is facing a more than $50 billion deficit.
Newsom and state legislators reached a revised budget deal earlier this week, which officials say makes deep cuts to public services and pay for state workers but will help to close that gap.