Newsom Releases May Budget Revision
Gov. Gavin Newsom released his revised $288 billion budget proposal last week for the 2024-2025 fiscal year. The new plan addresses the state’s $44.9 billion deficit by eliminating vacant state jobs and making steep cuts to spending on programs championed by the governor and the legislature in the last few years.
Last month, an agreement between the governor and state legislature reduced the deficit by $17 billion through spending cuts, delays, and internal borrowing tricks. Newsom now proposes closing the rest of the gap through similar approaches, including withdrawing $12.2 billion from the state’s reserve fund, to be spent over the next two years.
While the spending plan would protect many commitments made in prior years, it also includes cuts and delays to programs and services, including homeless housing, climate change, health care, services for the disabled and undocumented, and funding cuts for CSU and UC facilities.
The plan now includes $260 million in cuts to Homeless Housing Assistance and Prevention grants, which cities and counties use to pay for homeless services. This is a departure from his initial budget in January, which only delayed payment to the 2025-2026 fiscal year.
The budget also delays an expansion to SNAP, the state’s food assistance program, for two years.
Youth behavioral health is slated for $72.3 million in cuts this year, followed by $348.6 million next year, and $5 million the following year for school mental health partnerships, including services, grants, education, and youth suicide reporting and crisis response.
Childcare slots are being held at their current level, indefinitely pausing the planned expansion for low-income families.
Lawmakers have until June 15 to pass a balanced budget or forgo their pay.