Posted on 01/11/2024 12:53:08 AM PST by Libloather
California Governor Gavin Newsom has proposed slashing climate change, housing and clean energy programs in the state to plug an estimated $38billion deficit.
The Democrat, 56, released details of California's new $291billion state spending plan for the 2024-25 budget year on Wednesday.
The nonpartisan Legislative Analyst's Office predicted last month that California's budget deficit would be $68 billion but Newsom said it was much lower.
He proposed covering the financial shortfall by tapping $13billion from reserves, trimming $8.5billion from programs, deferring some spending to the future and spreading it out over more years.
Newsom's plan includes $8.5 billion in spending cuts, with about half of those cuts spread across various housing and climate programs. Liberals have long pushed climate change and housing programs as part of their agenda.
Newsom will now spend the next six months negotiating a final plan with the Legislature, which is also controlled by his party. The budget year begins July 1.
The decline in revenue comes from drop in the stock market and delayed tax collection last year because of winter storms, according to the San Francisco Chronicle.
Newsom vowed not to roll back his previous major spending commitments — including free kindergarten for all four-year-olds and free health insurance for all low-income adults regardless of their immigration status.
But he wants the Legislature to consider delaying a planned minimum wage increase for healthcare workers in years when there isn't enough money in the budget to pay for it — something he said lawmakers agreed to in advance before he signed the law last year.
The governor stopped short of calling California's budget deficit a 'crisis.' But his plan to cover the deficit includes pulling more than $13 billion from the state's reserves — an action that will require him to declare a 'fiscal emergency.'
(Excerpt) Read more at dailymail.co.uk ...
I guess climate change isn’t that bad after all.
People are realizing all these programs have created no difference in “climate”...and concede (but they’ll never say it) that the universe is self regulating and you can’t do a damn thing about climate EXCEPT make life worse for the living with bright ideas.
Still at least $68 billion. They just moved the numbers around and pretend the deficit is lower.
interesting the juxtaposition with his recent expansion of healthcare to recent illegals, knowing the state is in deficit trouble. like most Dems, he makes promises he can’t keep.
Gavin Newsom is truly a special kind of stupid.
Yep. Tax rates are going from 13.6% to 14.7%. Ouch.
How about killing high speed rail project and free illegal health care. That will solve the problem.
Maybe cancel the $2 to $3 billion “free” health care for illegals, too.
“like most Dems, he makes promises he can’t keep.”
But he dam shore got his virtue signaled.
Democrats are (financial) idiots!
They keep passing anti-business laws (and regulations) and wonder why the cash flow into Sacramento is down. Raising minimum wage beyond the value the worker brings to the table results in (a) hiring fewer workers (b) raising prices and last but not least (c) close the business down.
On January 1st a new law came into effect that plans on taxing the wealthy, not on money earned but on their net worth, and not just what is in California, but where ever that wealth is, and to make sure they get every penny they want people’s lawyers to rat them out (where the state and the lawyer get a share of the money.
People with a lot of wealth know one thing, that is how to avoid taxes, in this case all they have to do is (a) leave California and (b) take their wealth and business with them.
I predict the net effect of this law will be less money going to Sacramento.
Democrats learned everything they know about wealthy people they got from the Disney Scrotch McDuck comics where wealthy people have a swimming pool in the base where they can roll around in all their money. That is make believe.
What wealthy people do is invest their money and buy things. In other words they put their money back into the economy which means businesses get some and workers get some and as those two groups spend the money even more people are working.
One of the basic laws of fiances is that the private sector can spend their own money better then any government.
Just don’t be niggardly with the reparation payments.
Numbers don’t lie. Either Newsome or the accountants are lying. It’s always CA and NY in the red and begging the rest of the states for $$$$ to pull them out of messes they create over and over again.
If all he did was fix the problem he created with his stupid shut down of the supply chain in California’s seaports, he would have plenty of money, as well as lower prices across the US.
“On January 1st a new law came into effect that plans on taxing the wealthy, not on money earned but on their net worth, and not just what is in California, but where ever that wealth is”
Billionaires, started Jan.1 2024 and those worth 50 million plus Jan. 2026.
Billionaires, started Jan.1 2024 and those worth 50 million plus Jan. 2026.
—
Gives them plenty of time to move their assets, business and themselves out of California.
What I don’t understand why big business support Democrats?
Why do the major corporations based in San Francisco support Democrats? Do they not have any influence on the politicians? What do they get in exchange for their campaign contributions? It is a mystery to me.
This new law will effect silicon valley (which isn’t what it used to be anyway). Technology have a few business friendly states they can move to.
I wonder when Hollywood becomes a ghost town only inhabited by illegals, druggies, “homeless” and prostitutes. Between the unions and government it is costly to make movies in California. Which big studio will be the first to close up in California and move to another state (or country).
Here in LA the local news last night showed Newsom saying the reason we have a budget deficit a crisis is because we didn’t collect any taxes last April.
Duh
Climate Change spending cuts:
—Newsom’s plan includes $8.5 billion in spending cuts, with about half of those cuts spread across various housing and climate programs....
—proposed to cut $2.9 billion in climate change spending, including $40 million from a program that helps local and regional governments fight the impacts of extreme heat and $23.5 million for a pilot program to deploy zero-emission trucks that transport goods from ports.
—The governor also plans to postpone until 2027-28 some $600 million in spending for programs to help motorists replace gas vehicles with hybrid and zero-emission versions.
— the plan delays $200 million until 2026-28 on rebates to homeowners who install solar panels.
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