{"id":2243302,"date":"2024-05-13T08:24:03","date_gmt":"2024-05-13T12:24:03","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/newsom-budget-promises-no-new-taxes-but-15-2b-in-cuts-against-80b-deficit\/"},"modified":"2024-05-13T08:34:31","modified_gmt":"2024-05-13T12:34:31","slug":"newsom-budget-promises-no-new-taxes-but-15-2b-in-cuts-against-80b-deficit","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/newsom-budget-promises-no-new-taxes-but-15-2b-in-cuts-against-80b-deficit\/","title":{"rendered":"Newsom&#8217;s budget pledges &#8216;no new taxes&#8217; while proposing $15.2B in cuts to combat an $80B deficit"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fnewsom-budget-promises-no-new-taxes-but-15-2b-in-cuts-against-80b-deficit%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2243302&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>California Governor \u200dGavin \u200cNewsom&#8217;s 2024-2025 budget proposal vows &#8220;no new taxes&#8221; amidst a projected $80 billion deficit, $7 billion higher \u2062than January estimates. The plan includes $15.2 billion in cuts, reducing water storage and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-brazen-crimes-high-profile-murder-put-l-a-at-policing-crossroads\/\" title=\"Report: Brazen Crimes, High-Profile Murder Put L.A. at Policing Crossroads\">prison populations<\/a>, aiming for\u2063 a $3.4 billion surplus.\u200b Critics\u2064 question the budget&#8217;s sustainability with reliance \u2063on reserves\u200c and program pauses. Newsom defends expanding health care for all, including \u2063illegal immigrants.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>(The Center Square) \u2013 California Gov. Gavin Newsom promised \u201cno new taxes\u201d in his 2024-2025 budget as he announced the state\u2019s shortfall is $7 billion worse than was expected in January, and proposed $15.2 billion in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/another-wave-of-portland-police-quit-amid-massive-spike-in-shootings-and-stabbings-fire-dept-responding-to-10-homeless-tent-fires-a-day\/\" title=\"Another Wave Of Portland Police Quit Amid Massive Spike In Shootings And Stabbings; Fire Dept. Responding To 10+ Homeless Tent Fires A Day\">budget cuts<\/a> against an up to $80 billion deficit. Newsom\u2019s cuts include reducing water storage and reducing the state\u2019s prison population by 4,600 inmates.<\/p>\n<p>\u201cThe need to right-size in relationship those expenditures to revenue is self-evident as it relates to some of the projected shortfalls we announced in January,\u201d said Newsom in his budget proposal press conference.<\/p>\n<p>In January, Newsom announced he was expecting a $37.9 billion budget deficit, compared to up to $73 billion by the non-partisan, state-funded Legislative Analyst\u2019s Office. Newsom claims new data says the state\u2019s shortfall will be $7 billion worse than expected in January, suggesting the state\u2019s deficit could be as high as $80 billion.<\/p>\n<p>Once accounting for this figure and Newsom\u2019s $17.3 billion \u201cearly action\u201d bill that cut $3.6 billion in spending and shifted the remainder of the spending to later years, the governor\u2019s reported deficit is now $27.6 billion for the 2024-2025 fiscal year.<\/p>\n<p>In light of this, Newsom proposed $15.2 billion in cuts, $4.2 billion use of reserves, $14.8 billion in program expansion pauses and shifts, and $7.5 billion from borrowing and non-tax revenues to produce a $3.4 billion surplus for the 2024-2025 fiscal year.<\/p>\n<p>It\u2019s unclear what fiscal reason would rationalize drawing $4.2 billion from reserves to generate a $3.4 billion surplus, instead of taking out just $800 million instead.<\/p>\n<p>\u201cThe Governor has recognized the seriousness of the situation and it is a positive sign that he is proposing real cuts and focusing on efficiencies. Unfortunately, the proposal still relies on too many gimmicks and fund shifts and the Governor is still underestimating the actual size of the budget shortfall that must be addressed,\u201d said Pacific Research Institute Senior Fellow for Business and Economics Wayne Winegarden in an interview with The Center Square. \u201cOn net, the budget is still on an unsustainable path.\u201d<\/p>\n<p>Newsom also defended expanding the state\u2019s expansion of Medi-Cal to all illegal immigrants in the state, which is expected to add 700,000 beneficiaries to the program at a cost of $3.4 billion, or nearly $5,000 per individual, in fiscal year 2024-2025.<\/p>\n<p>\u201cWe also want to maintain our <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/thanksgiving-table-setter-a-guide-to-the-behemoth-build-back-better-act\/\" title=\"Thanksgiving Table Setter: A Guide to the Behemoth Build Back Better Act\">health care expansion<\/a> across the board, regardless of ability to pay, regardless of pre-existing conditions and your immigration status,\u201d Newsom said.<\/p>\n<p>Newsom\u2019s major one-time savings come from $2 billion in cuts to state-funded broadband investments, $500 million from water storage spending cuts, and $550 million from facility grants for building more \u201ctransitional kindergarten\u201d spaces for the universal rollout of a new grade between preschool and kindergarten, and $1.4 billion from limiting the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/newsoms-new-budget-proposal-would-cut-10000-vacant-state-jobs-to-close-deficit\/\" title=\"Newsom's latest budget plan aims to eliminate 10,000 empty state positions to address the deficit\">state childcare expansion<\/a> to 119,000 slots, instead of the earlier 200,000.<\/p>\n<p>Recurring annual savings include $80 million per year from reducing prison capacity by 4,600 inmates and closing other prisons early, and $510 million from the Middle Class Scholarship program for students pursuing a teaching credential with family income and assets up to $217,000.<\/p>\n<p>Newsom\u2019s May budget also proposed spending more per student over his January budget, at $23,940 in May compared to $23,519 in January.<\/p>\n<p>Newsom also proposed creating a new account to prevent anticipated revenue in excess of historic levels from being spent before it arrives at the state treasury, as is currently done, which creates financial difficulties when the money does not arrive.<\/p>\n<p>\u201cIt would capture this excess revenue and allow us on the basis of historic trends to set it aside until it materializes as opposed to assuming it\u2019s coming in on the basis of the [Legislative Analyst Office] and [the Department of] Finance and experts saying we believe it will come in and then we appropriate it only to discover it didn\u2019t come in a la what occurred over the last two fiscal years,\u201d Newsom said.<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/a><\/strong><\/p>\n<p>Also, with home insurance rates continuing to rise as many insurers simply leave the state because they can\u2019t <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/breitbart-business-digest-the-feds-credibility-problem-is-why-one-third-of-americans-think-theyll-be-poorer-next-year\/\" title=\"Breitbart Business Digest: The Fed\u2019s Credibility Problem Is Why One-Third of Americans Think They\u2019ll Be Poorer Next Year\">raise rates fast<\/a> enough to cover losses, Newsom proposed expediting the insurance rate filing process, which would enable more insurers to stay but do little to address the wildfires driving rate increases and losses in the first place.<\/p>\n<p>After introducing a budget in January, the governor takes in more financial data and feedback from the legislature to produce a revised budget proposal in May. Under California law, legislators must pass a balanced budget by June 15 to keep getting paid.<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>California Gov. Gavin Newsom vowed &#8220;no new taxes&#8221; in the 2024-2025 budget. The state&#8217;s deficit is $7 billion higher than anticipated in January. Newsom proposes $15.2 billion in cuts to address the potential $80 billion shortfall. Measures include scaling back water storage and state programs<\/p>\n","protected":false},"author":1,"featured_media":2243303,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/04\/AP24112232276037-1024x591.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2243302","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/04\/AP24112232276037-1024x591.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2243302","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2243302"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2243302\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2243303"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2243302"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2243302"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2243302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}