"Newsom's office outlined a behemoth $349 billion budget, though his proposal for how to spend all of that money is far from final. Lawmakers and the Democratic governor will spend the next several months fighting and negotiating over priorities - and cuts. Last year Democrats had to roll back their ambitious program to provide free health care to immigrants without legal status in the face of a $12 billion deficit."
""This budget really is about an eye towards ensuring that we have a sustainable fiscal plan going forward," Finance Director Joe Stephenshaw said during a Friday briefing. This year, they will also face a $1.4 billion loss in federal funding after new federal policy changes to health care and food assistance programs for low-income people. Lawmakers have said repeatedly California is in no position to backfill that money."
California faces a $2.9 billion budget deficit this year, an estimate lower than legislative analysts projected. The shortfall could necessitate spending cuts and prevents the governor from advancing new programs during his final year. This is the fourth consecutive year of multibillion-dollar deficits despite revenue growth from stock market gains and artificial intelligence investments. The administration proposed a $349 billion budget that remains subject to negotiation and potential reductions. The state will also absorb a $1.4 billion federal funding loss from policy changes to health care and food assistance, which lawmakers say cannot be backfilled. A structural deficit could grow substantially next year.
Read at ABC7 Los Angeles
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