California Governor Gavin Newsom announced Tuesday that he will cut billions of dollars in planned investments originally intended for ‘climate change’ programs and delay other money for other large initiatives amid a $22.5 billion state budget deficit.
Newsom released the state’s $297 billion budget plan for the fiscal year 2023-24, reportedly saying he left alone California’s reserves, warning of an imminent nationwide recession.
“That makes us very mindful of the uncertainty of this next calendar year — and as a consequence of that — we’re not touching the reserves because we have a wait-and-see approach to this budget,” Newsom told the Los Angeles Times.
Included in the cuts is about $6 billion that will no longer be put into programs intending to bring zero-emission vehicles into low-income neighborhoods and replace greenhouse gas vehicles such as delivery trucks, airplanes, rail lines, and more, according to KCRA.
California Gov. Gavin Newsom proposed a leaner budget Tuesday that would cut spending on climate change and transportation programs in response to a projected $22.5 billion budget shortfall. https://t.co/29ndV2ogBg pic.twitter.com/W7GvPreCC1
— Wittgenstein (@backtolife_2023) January 11, 2023
As Politico reported, Newsom also has suggested that spending plans be delayed as they pertain to public universities, transit, behavioral health, building decarbonization, and watersheds.
The California Republican Party alleged in a statement to KCRA that Newsom has neglected to improve state problems such as homelessness and wildfires even while spending at record-high levels.
“Now with a massive budget shortfall projected, it’s time for Gavin Newsom to finally get serious about smarter spending to resolve the many issues that are plaguing our state and driving long-time residents away,” said party Chairwoman Jessica Millan Patterson.
Newsom and his administration alike did not appear to take responsibility for the drop in state revenue, explaining that it came as a result of an unstable stock market and interest rate increases from the Federal Reserve.
The governor indicated he has faith California is in a better position “than most other states to weather what’s to come.”
Originally, the state of California continuously insisted that there was not a financial deficit, but rather a budget surplus of $97.5 billion—a far cry from the now-reported deficit of $22.5 billion.
A report by Fox News revealed that analyst officials claim that California’s expected tax revenues ended up about $41 billion less than what the state had accounted for.
The state has claimed it was in a budget surplus for the past several years, according to a report by the Daily Wire.