While California’s budget deficit was projected to be $68 billion, Governor Gavin Newsom said it was a $37.9 billion projected shortfall.
Newsom announced the update while unveiling the 2024-25 state budget proposal on Wednesday.
“We've come to expect the unexpected as it relates to the volatility of our tax system,” he said.
In the state budget proposal, the governor asked to pull $13 billion from the state’s rainy day fund. There were also plans to cut $8.5 billion from a myriad of programs, including climate, housing programs, and school facilities.
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The plan also expects to expand on medical to undocumented immigrants as well as homeless grants for local governments. Newsom plans to maintain his mental health programs, invest in officer wellness programs, and recruit 1,000 new California Highway Patrol officers.
Newsom said he would declare a fiscal emergency if he needed to; however, state officials are waiting for tax returns to be finished.
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