Faced With Record Deficit, California Legislature Passes Early Action Budget Plan

Facing a $73 billion budget deficit, the California Legislature passed a proposal April 11 to amend prior years’ budgets and reduce the spending gap by about $17.3 billion.

Included in the so-called “junior budget bill” are a combination of $3.6 billion in reductions, $5.2 billion in new revenue and borrowing, $3.1 billion in delays, $2.1 billion in deferrals, and about $3.4 billion in cost shifts from the state’s general fund to other funding sources.

The plan revisits the prior two fiscal years’ budgets and moves billions of dollars in unspent money back to the state’s general fund.

Proponents of the package said that while it helps address the shortfall, more solutions will be necessary before the budget is passed by its June 15 deadline. The 2024–25 fiscal budget goes into effect July 1.

Read Full Article Here