Photo: Justin Sullivan/Getty Images
California Governor Gavin Newsom has announced a proposed budget of $297 billion for the 2023-2024 fiscal year.with which an economic recession will be faced despite representing a budget deficit of more than $20,000 million dollars.
With this budget, the California government seeks to fulfill its commitments in education, homelessness and in its fight against forest fires and drought.
In the 2023-24 budget, we prioritize the issues that matter most to Californians — despite declining revenues.
CA is transforming education, addressing homelessness & housing, increasing healthcare access, fighting climate change & protecting communities from flood & drought. pic.twitter.com/67VUVcg8YB
— Office of the Governor of California (@CAgovernor) January 10, 2023
Newsom’s announcement was bleaker than those made in the past two years, when California enjoyed large surpluses that allowed the state government to deliver stimulus checks directly to residents.
For the next fiscal year, Newsom intends to balance the budget by cutting resources for climate and transportation, and to a lesser extent for housing.with the objective of compensating said cuts in state funds with federal resources.
“We are keeping our promises. I want people to know that regardless of this modest shortfall, we will continue to make unprecedented investments to transform public education and higher education…address this homelessness crisis head-on, without cutting that space, affordable housing: continue with the progress I’ve made,” the governor declared.
In November, the state fiscal analyst reported that California would have a projected deficit of $24 billion in fiscal year 2023-24.a very different situation after last year’s surplus of $100 billion dollars.
In your ad, Newsom presented a slightly more optimistic scenario, estimating a deficit of $22.5 billion.caused in large part by inflation, interest rate increases and stock market crashes that negatively impacted the incomes of the wealthiest Californians and reduced state tax revenue.
The governor proposed to cut the $54 billion in five-year climate investments it made in 2021 and 2022 by 11%as well as reduce the transit infrastructure budget by $2 billion over the next three years.
Newsom would also cut $350 million from housing programs designed to help low-income first-time homebuyers.
The budget proposal for Newsom considers new items, such as $93 million in the fight against the fentanyl crisis over the next four yearsincluding $79 million for distribution of the drug naloxone, which is administered in cases of overdose.
On the subject of education, California will invest $23,723 in each student, the highest state spending per student to date.
Another high-profile program is the expansion of the state’s transitional kindergarten, which aims to reach 450,000 students throughout California per year. Once implemented, the program, which has a price tag of $3 billion, will create a new grade level before kindergarten for the 2025-2026 budget year.
Newsom’s proposal does not recover any of the $10 billion he had last year for homeless people. Cities and counties will receive $1 billion to address the homelessness crisis in fiscal year 2023-2024, plus $400 million for encampment cleanup.
Tuesday’s budget proposal announcement represents the start of the budget process. The Governor will revise his budget proposal in May based on the latest economic conditions, at which time the Legislature will make its changes..
Newsom will sign a final version over the summer.
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