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Governor Newsom reveals revised state budget, prioritizing balanced solutions for a leaner, more efficient government
Below are key takeaways from Governor Newsom’s proposed budget:
A BALANCED BUDGET FOR TWO YEARS. The Governor is solving two years of budget problems in a single budget, tightening the state’s belt so that the budget returns to normal after the tumultuous years of the COVID-19 pandemic. By addressing this budget year’s deficit – and next year’s – the Governor is eliminating the 2024-25 deficit and eliminating a projected deficit for the 2025-26 budget year that is $27.6 billion (after an early budget action) and $28.4 billion, respectively. .
CUTTING SPENDING, MAKING GOVERNMENT FUNNER. Governor Newsom’s revised balanced state budget cuts one-time spending by $19.1 billion and ongoing spending by $13.7 billion through 2025-26. This includes a nearly 8% cut in state operations and a targeted elimination of 10,000 unfilled state positions, improving government efficiency and reducing non-essential expenses – without increasing taxes on individuals or furloughing state workers. The budget makes California government more efficient, leaner and modern – saving costs by streamlining purchasing, reducing bureaucracy and reducing redundancies.
PRESERVING KEY SERVICES AND SAFETY NETWORKS. The budget maintains service levels for key housing, food, health care and other assistance programs that Californians depend on, while also addressing the deficit by halting expansion of certain programs and scaling back numerous recent investments, unique and continuous.
NO NEW TAXES AND MORE SAVINGS FOR RAINY DAYS. Governor Newsom is balancing the budget by reining in state spending — cutting costs, proposing no new taxes on California workers and small businesses — and reducing reliance on the state’s “Rainy Day” reserves this year.