This is like putting a Band-Aid on a hemicorporectomy.
From the Los Angeles Times, June 22:
Gov. Gavin Newsom and Democratic lawmakers struck a deal Saturday to make $16 billion in cuts, declare a statewide fiscal emergency and pull money from the state’s rainy-day reserves to balance a $46.8-billion budget deficit.
The agreement for a $297.7-billion spending plan is the result of weeks of contentious negotiations with labor unions and business interests after weaker-than-anticipated revenue forced Newsom and lawmakers to scale back California’s progressive policy agenda. The shortfall inspired a tug-of-war over coveted state dollars that has caused rifts between the governor and some of his closest allies at the Capitol.
Among the more high-profile changes, the 2024-25 budget plan delays a minimum wage increase for healthcare workers until at least October, cuts $1.1 billion for affordable housing and slashes $750 million in funding for the state prison system.
California’s business community also took a hit, with the three-year suspension of nearly $15 billion in tax breaks a year earlier than Newsom initially proposed.
“This agreement sets the state on a path for long-term fiscal stability — addressing the current shortfall and strengthening budget resilience down the road,” Newsom said in statement. “We’re making sure to preserve programs that serve millions of Californians, including key funding for education, health care, expanded behavioral health services and combating homelessness.”
The deficit marks a dramatic reversal of California’s financial standing from a projected $100-billion surplus two years ago and creates a challenging political narrative for Newsom, who often boasts of the state being an essential economic engine for the nation....
....MUCH MORE
