California Announces Significant Budget Cuts

The state of California announced a series of budget cuts intended to close a significant gap this week. The administration of California Gov. Gavin Newsom (D) inherited a significant budget surplus, which has now become the largest budget deficit in the country.

The state’s government was forced to accept almost $20 billion in cuts last year, with the legislature approving a measure this week. The state cut two separate programs tied to climate change, in addition to payroll and welfare funds.

The state also announced funding delays for housing, education and transit programs.

Despite the cuts, the state still faces a significant budget deficit. The governor’s office estimates it at about $38 billion. However, the state’s Legislative Analyst’s office rates it at about $73 billion.

The latest round of budget cuts totaled about $17.3 billion as part of the wider “Shrink the Shortfall” effort. This included almost $4 billion in cuts to social programs, education and climate change programs.

The state is also attempting to bridge some of the gap using its own funds and new revenue sources.

“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,” said Newsom. “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 Golden State is not the only location to announce significant budget cuts due to increases in spending. New York City announced a series of cuts last year following the increased costs of almost 200,000 migrants entering the city since last year.

New York has spent more than $1 billion on migrant costs and could spend more than $10 billion in coming years. The city has set up a series of migrant shelters and has put up thousands of illegal immigrants in hotels.

The city is also proceeding with a program to provide the migrants with pre-paid cards, which received considerable criticism from conservatives.