Newsom proposes plan to close budget hole

He said it is smaller than what the Legislative Analyst’s Office estimated in December.
California Gov. Gavin Newsom discusses his proposed state budget for the 2024-2025 fiscal year, during a news conference in Sacramento, Calif., Wednesday, Jan. 10, 2024. (AP Photo/Rich Pedroncelli)

California Gov. Gavin Newsom (D) on Wednesday proposed pulling $13.1 billion from state rainy-day savings, cutting $8.5 billion in spending, and delaying, deferring and shifting billions more to close a budget hole he said totals $37.9 billion.

That’s about half the $68 billion deficit the bipartisan Legislative Analyst’s Office estimated in December. Newsom said his team expects the state’s costs to be lower and revenues to be higher next year than the LAO’s team does.

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