Gov. Newsom Presents Balanced Budget for California; Avoids Tax Hikes, Worker Furloughs

Joe W. Bowers | California Black Media (CBM) – On May 10, Gov. Gavin Newsom presented his annual revision of the state budget for the 2024-25 fiscal year. Commonly referred to as the “May Revise,” the $288 billion spending plan focuses on stringent spending cuts, improving government efficiency, streamlining procurement, cutting bureaucratic obstacles, and reducing redundancies rather than resorting to tax increases or implementing worker furloughs. “Without raising taxes on Californians, we’re delivering a balanced budget over two years that continues the progress we’ve fought so hard to achieve, from getting folks off the streets to addressing the climate crisis to keeping our communities safe.” Newsom stated. Highlights of the proposed budget include: Achieving Fiscal Stability Over Two Years The budget tackles deficits for both the current budget year and the next, eliminating a projected $27.6 billion deficit for the 2024-25 fiscal year and a projected shortfall of $28.4 billion deficit for the next fiscal year. By tackling these budget shortfalls now, Newsom aims to achieve a positive operating reserve balance over the next two fiscal years. Streamlining Spending and Enhancing Efficiency To address the budget deficit, Newsom’s budget cuts one-time spending by $19.1 billion and ongoing spending by $13.7...