The Governor has presented his proposed budget for the year with a projected nearly 40 billion dollar deficit.
Though the legislatures analyst office remains uncertain, suggesting his budget proposal is “optimistic” with “strengths and weaknesses”. The analyst office suggests the deficit may, in fact, be larger, closer to the 60 million mark. Joe Berry, President of the CA Broadcasters Association and political analyst, says there are going to be some disappointments to some state programs already in the works, which may include wage increases for healthcare workers, who are expecting to see the minimum wage hike to $21.00 per hour by June 1st and a dollar increase each year through 2028.
Cal Matters reports that the analyst’s office states Newsom plans to pull $13 billion from the state’s reserves, leaving about $11 billion in California’s rainy day fund.
Amidst fiscal uncertainties and a projected deficit, the proposed budget sets the stage for a challenging financial landscape in California, extending concerns into the next five years as projected by both the governor and the analyst office.
