California's May revision budget released, with the state at a deficit of nearly $32 billion
Governor Gavin Newsom released his May revision budget and said that the state's budget deficit has grown to nearly $32 billion. That is about $10 billion more than predicted in January, when he offered his first budget proposal.
While many are wondering how we went from a $100 billion surplus to a $32 billion deficit, the Governor and his team are tackling a tough challenge while spending record amounts on the homeless and improving flood protection.
With federal lawmakers at a debt impasse, rising interest rates, and delayed tax receipts from an extended tax deadline, Governor Newsom said California must be smart in managing its finances as they forge forward with ambitious rebuilding efforts.
The Governor would pull from over a billion in unspent funding and pull back in spending via funding delays or revenue withdrawals
This comes amid an aggressive $15 billion initiative to help the unhoused.
The Governor said, "We have $180 billion that we have identified over the next decade, in terms of investments and infrastructure. The question for us is, are we gonna get out of our own way? Are we going to leverage these commitments by getting more federal dollars by being front and center with "shovel-ready projects"? The only way to do that is to reform our permitting process procurement process in the state of California. Not just for housing or big stadiums, not just for homeless housing. We've got to do it more broadly if we want to compete in manufacturing, the Chips Act, and things like that. So we are going to lay out next week, and you may press me on this, but I'm going to lay out next week. I'm previewing a legislative package. To me, that is exciting, bold, and meaningful."
In the last four years, California has invested more to increase housing supply than ever in state history to achieve their self-imposed mandate of building 2.5 million units by 2930 nearly half of them affordable