Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Politics

New California budget plan to cover state’s $32 billion deficit without touching state reserves

by June 28, 2023
June 28, 2023
New California budget plan to cover state’s $32 billion deficit without touching state reserves

California Gov. Gavin Newsom and the Democrats who control the state Legislature agreed late Monday on how to spend $310.8 billion over the next year, endorsing a plan that covers a nearly $32 billion budget deficit without raiding the state’s savings account.

The nation’s most populous state has had combined budget surpluses of well over $100 billion in the past few years, using that money to greatly expand government.

But this year, revenues slowed as inflation soared and the stock market struggled. California gets most of its revenue from taxes paid by the wealthy, making it more vulnerable to changes in the economy than other states. Last month, the Newsom administration estimated the state’s spending would exceed revenues by over $30 billion.

The budget, which lawmakers are scheduled to vote on this week, covers that deficit by cutting some spending — about $8 billion — while delaying other spending and shifting some expenses to other funds. The plan would borrow $6.1 billion and would set aside $37.8 billion in reserves, the most ever.

‘In the face of continued global economic uncertainty, this budget increases our fiscal discipline by growing our budget reserves to a record $38 billion, while preserving historic investments in public education, health care, climate, and public safety,’ Newsom said.

Republicans criticized the budget plan as unsustainable, noting it would leave the state with projected multi-billion dollar deficits over the next few years. They said the state’s gas tax is scheduled to increase on Saturday, an automatic adjustment that is tied to inflation. Republicans have repeatedly tried to halt those increases, but to no avail.

‘What do Capitol Democrats have in store for you this holiday weekend? Higher gas prices!’ Assembly Republican Leader James Gallagher posted on Twitter.

Budget talks stalled over the weekend as Newsom sought major changes to the state’s building and permitting process. Newsom said the changes are needed to speed up vital construction projects, including expanding the state’s energy capacity and upgrading the state’s aging water infrastructure.

But a group of lawmakers from the Central Valley feared Newsom was using the proposal to push through a long-delayed project to build a giant tunnel to send water to Southern California. In the end, Newsom got most of the changes he wanted — but lawmakers made sure the changes wouldn’t benefit the tunnel project.

GAVIN NEWSOM SAYS HE ‘ASPIRES’ ‘TO BE RONALD REAGAN’ ON THIS KEY ISSUE 

The budget includes a lifeline for public transit agencies struggling to survive following steep declines in riders during the coronavirus pandemic. It allows transit agencies to use some of the $5.1 billion in funding over the next three years for operations.

Still, some San Francisco Bay-area lawmakers said the spending wasn’t enough to forestall painful service cuts over the next few years. Monday, they proposed legislation that would increase tolls on seven state-owned bridges — including the San Francisco-Oakland Bay Bridge — by $1.50 over the next five years. State Sen. Scott Wiener, a Democrat from San Francisco who supports the proposal, said it would generate $180 million in revenue.

Democratic state Sen. Steve Glazer said he would oppose any toll increase, saying in a statement ‘Transit riders and taxpayers have witnessed first hand the trail of broken promises by advocates for bridge toll increases.’

‘The status quo is failure and we should not put in another penny to support it,’ he said.

The budget does not raise income taxes to cover the deficit, but it does impose a new tax on managed care organizations — private companies that contract with the state to administer Medicaid benefits. The tax would generate an estimated $32 billion over the next four years.

Some of that money would go toward increasing how much money doctors get for treating Medicaid patients. It would also offer $150 million in loans to hospitals that are at risk of failing. That’s in addition to $150 million lawmakers approved earlier this year.

‘In good years, we buckled down so that in tough years this one, we could meet our needs,’ Senate President Pro Tempore Toni Atkins said. ‘That pragmatic approach works for household budgeting, and it works for state budgeting.’

<!–>

This post appeared first on FOX NEWS
–>

0
FacebookTwitterGoogle +Pinterest
previous post
WI GOP won’t make substantive changes to budget, including funding cut to University of Wisconsin System
next post
Trump reacts after leaked recording shows him discussing classified docs

You may also like

Mass migrant releases begin in San Diego as...

September 16, 2023

Whichever candidate wins Hispanic vote should win 2024...

April 5, 2024

Trump’s pledge against ‘forever wars’ could be tested...

December 13, 2024

Radical Teacher’s Union Boss Calls Republicans’ Transgender Rhetoric...

November 24, 2022

Defense Secretary Lloyd Austin diagnosed with prostate cancer

January 10, 2024

Biden admin eco rule curbing oil drilling, mining...

July 5, 2023

“F**k Them!” Former DC Cop Michael Fanone Heckled...

December 7, 2022

Oops! Old Joe Biden Drops His Handler’s Cue...

October 12, 2022

Biden references ‘instinct’ to ‘walk away’ from democracy...

June 7, 2024

Chinese hackers attempted to breach Trump and Harris...

October 25, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025
    • Tech ETFs are Leading Since April, but Another Group is Leading YTD

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,567)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved