Gov. Gavin Newsom announced his plans to reduce investments for California as the state wanted to run with the future of the non-emission vehicles, climate change programs and delay funding for new child-care slots as the Golden State is dealing with a change when it comes to its economic shortage.
Newsom’s administration pointed the finger on the high inflation, the Federal Reserve’s raising interest rates and the stock market as the major issues that are the result of revenues to plummet compared to last Summer’s goals.
According to LA Times, his $297-billion budget plan for 2023-24 relies on delaying investments to help with the shortfall.
Newsom said, he was cautious when it came to saving emergency funds in case the state ever came across a rough patch. So, when the governor’s "January budget proposal served as a starting point for months of negotiations at the state Capitol as campaigner’s aim for money to assist with their causes and leaders of the Assembly and Senate pursue their spending priorities."
Talks over budget decisions will come in May, when Newsom will issue a revised budget this year as it will showcase the reflection of the economic negotiations before the Legislature decides to pass the state's spending bracket for the 2023-24.
Newsom’s proposal marks it a major cutback on his January budget proposal since taking office in 2019.
His first budget topped $214 billion and broke records as the largest in California history.
Newsom’s overall spending plan is only $10.9 billion less than what was allocated in the current budget year and much greater than historic averages with the estimated 22 billion deficient.