The problem is that deferred maintenance will cost more next year and the year after. Revenues will go down due to high unemployment, billions for illegal aliens and more billions for the homeless industrial complex. The failed deficit ridden schools will lose have a billion meant for child care, called “transitional kindergarten”.
“The savings come in different forms. There’s some $3.6 billion in reductions to one-time funding, $5.2 billion comes from revenue and borrowing, $5.2 billion in delays and deferrals and $3.4 billion through shifting costs from the general fund to other funds.
Additionally, about half of the state’s fund reserves — roughly $19 billion — will be tapped.
And we lose half of our Reserves—in case of an earthquake the State is broke and will be unable to help anybody. Now you understand how Newsom has put us in the Doom Loop.
Top California leaders reveal specifics about budget cuts
The agreement would pull back funding, delay and defer other spending and shift costs away from the state’s general fund.
ALAN RIQUELMY, courthousenews, 4/4/24 https://www.courthousenews.com/top-california-leaders-reveal-specifics-about-budget-cuts/
SACRAMENTO, Calif. (CN) — California’s top lawmakers and its governor announced an agreement Thursday to shave some $17 billion from the budget deficit.
The move comes in the form of what officials call “early action” — steps taken early in the budget process, when legislators have more options available to them.
The savings come in different forms. There’s some $3.6 billion in reductions to one-time funding, $5.2 billion comes from revenue and borrowing, $5.2 billion in delays and deferrals and $3.4 billion through shifting costs from the general fund to other funds.
Additionally, about half of the state’s fund reserves — roughly $19 billion — will be tapped.
“We are able to meet this challenge thanks to our responsible fiscal stewardship over the past years, including record budget reserves of close to $38 billion,” Governor Gavin Newsom said in a statement. “There is still work to do as we finalize the budget and I look forward to the work ahead together to continue building the California of the future.”
The fiscal moves will be included in a budget bill expected to be printed over the next few days. It could reach a vote of the state Assembly and Senate next week.
Newsom, Assembly Speaker Robert Rivas and Senate President pro Tempore Mike McGuire made a similar announcement about two weeks ago, though that one lacked specifics. Thursday’s announcement provides a closer look at how lawmakers intend to pull back expenses.
For example, there’s $762.5 million in savings from vacant job positions that are part of the $3.6 billion in reductions. Other pullbacks include $500 million from the school facility aid program, $300 million from the University of California, Los Angeles, Institute of Immunology and Immunotherapy program and $85 million from a foreclosure intervention housing preservation program.
The state will lower the deficit by delaying $100 million from its broadband last mile plan, $550 million from its preschool, transitional kindergarten and full-day kindergarten facilities grant program and $1 billion from the formula transit and intercity rail capital program.
The transit and rail program is designed to modernize methods of transportation, reducing greenhouse gas emissions, miles traveled and congestion.
“We are all committed to delivering an on-time balanced budget and this early action agreement is a critical first step to shrink the state’s shortfall,” McGuire said in a statement. “Next up: The Senate will be developing our final action budget plan, which we’ll release later this spring. It will be our roadmap to tackle the remaining budget deficit and adopting an overall state budget.”
Rivas praised his Democratic caucus for committing to what he called a “transparent, deliberative budget process.” Freezing some undisbursed, one-time spending will leave more options to lawmakers in June, when the budget must be passed.
The freezing or pull back of unspent dollars was a suggestion of the Legislative Analyst’s Office, which has offered some criticism of Newsom’s budget.
Newsom has said the budget deficit is around $38 billion, while the analyst’s office recently had an upward revision, saying it’s closer to $73 billion.
One reason for the difference is Newsom’s more optimistic view of expected tax revenue collections.
That difference was mentioned by state Senator Roger Niello, a Fair Oaks Republican and vice chair of the Senate’s Budget & Fiscal Review Committee, when he opposed a procedural vote Thursday on the Senate floor.
Niello called the Senate Democrats’ initial plan of reducing the deficit by $12 billion to $18 billion “an illusion.” He blasted what he said was a lack of transparency, which he called frustrating and contrary to the process that should exist.
State Senator Scott Wiener, a San Francisco Democrat and chair of the Budget & Fiscal Review Committee, called the process “incredibly transparent.” The bill he advanced Thursday will be printed, held for three days, reach a hearing and then move forward.
“This action is simply the first step,” Wiener said.
