Governor Gavin Newsom's proposed $322 billion state budget for the upcoming fiscal year claims to be balanced and includes a modest $363 million surplus. However, critics argue this surplus hinges on dubious accounting practices, including reliance on $11 billion from emergency reserves and financial maneuvers that could obscure true spending needs. The implications of catastrophic wildfires in Southern California, which threaten to reduce tax revenues and necessitate significant emergency funding, challenge the viability of this budget. State finance director Joe Stephenshaw has already indicated that new program expansions may be unlikely amid these fiscal uncertainties.
"The budget assumes at least $11 billion in drawdowns from emergency reserves, bookkeeping gimmicks and off-the-books loans can be counted as revenues."
"The $2.5 billion hastily appropriated by the Legislature is only the down payment on what the state may have to spend on fire suppression and recovery."
Collection
[
|
...
]