|
The biggest challenge facing lawmakers and Gov. Newsom is the state budget deficit — and it just got bigger.
|
|
|
On Friday, Newsom’s Department of Finance reported that preliminary General Fund cash receipts in January were $5 billion below (or nearly 20%) the governor’s budget forecast. Unless state tax revenues pick up significantly, the bigger number will make it more difficult to balance the state budget just through dipping into reserves and targeted spending cuts.
|
But exactly how the state can dig its way out — at least in the Assembly — remains to be seen. Speaker Robert Rivas told reporters Tuesday that the budget has been at the forefront of conversations among Assembly Democrats and that he is very concerned with the growing deficit.
|
He praised the governor’s commitment to preserving classroom funding, and said he didn’t see a way to avoid dipping into the state’s reserves, as the governor’s January budget plan proposed — though the speaker urged a prudent approach to using rainy day savings in case the budget picture worsens in future years.
|
- Rivas: “We are very concerned about short-term fixes for long-term problems. Clearly, we need to prioritize oversight and curb spending and our investments.”
|
In the coming weeks, Rivas’ plan calls for an oversight budget subcommittee he formed in December to review the state’s spending on housing, he said.
|
And while the governor has shot down any attempt to raise taxes or create new ones to increase state revenues, Rivas did not take a position.
|
But he may have to make some tough calls soon. Later on Tuesday, a spokesperson for Newsom’s Department of Finance issued a statement calling on the Legislature to take early action on $8 billion in savings to address the looming deficit.
|
Newsom will propose an updated budget in May before negotiations with legislative leaders and a final spending blueprint in June.
|
Tuesday’s updated deficit projection also prompted concern and criticism of Democrats from the Senate’s Republican caucus.
|
- Sen. Roger Niello, vice-chairperson of the Senate budget committee, in a statement: “It's time for a course correction and a renewed commitment to responsible budgeting that puts the needs of our residents first."
|
|
On other topics, Rivas said:
|
- His top priorities this session are public safety, farmworker housing and artificial intelligence;
- On amending Prop. 47, “everything is on the table,” though he prefers to address public safety issues through the bill package making its way through the Assembly;
- On state bonds, there are “diverse” views in the Democratic caucus about which borrowing measures to send to the November ballot, with climate, education and housing bonds in play.
|