Senate Democrats have released their budget plan to build on Gov. Newsom’s. The projected deficit has nearly doubled since the governor released his proposal in January and the Senate plan reflects the need to claw back more spending.
It calls for taking immediate actions to pull back another $17 billion in current funding. That would mean approving an emergency budget bill before hitting the Legislature’s constitutional deadline in mid-June.
Senate pro Tem Mike McGuire called the shortfall “real and serious” and said the state must move quickly and decisively to make the necessary reductions. He claimed that it proposes no new tax increases for Californians.
The document released Thursday is light on details but would approve several of Newsom’s proposals related to ag. It agrees with the administration’s ramp-up in the mill assessment and to shift more environmental justice costs at the Department of Pesticide Regulation to the sales tax. It also supports the governor’s spending cuts and delays for the Food Production Investment Program, the Healthy Refrigeration Grant Program and last-mile broadband infrastructure.
Newsom agreed that “big solutions” like the Senate plan are needed and hopes to see the proposal move forward quickly.
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Keep in mind: The plan accounts for a $53 billion shortfall, but the Legislative Analyst’s Office has warned that it is likely to be around $70 billion.
Next: The Senate Budget Committee approved an early action item on Thursday relating to rural hospitals and will soon take up the Senate’s “Shrink the Shortfall” early action plan. The final votes will likely come next week, once the governor and Assembly commit to the plan.
The Senate expects to release a comprehensive budget proposal later in the spring.
