SEVERE WX : Winter Weather Advisory View Alerts

California governor lays out deep budget cuts to close $54 billion deficit

California Gov. Gavin Newsom laid out a grim revise...

Posted: May 15, 2020 3:46 AM

California Gov. Gavin Newsom laid out a grim revised budget plan Thursday that would slash state funding for education and other programs to make up for a yawning shortfall due to the coronavirus pandemic -- and pleaded for more federal assistance to stave off the deepest cuts.

Only a few months after announcing a $5.6 billion budget surplus, Newsom and state lawmakers are now contending with a $54.3 billion deficit that they must close before the next fiscal year starts on July 1.

Newsom, a Democrat, repeatedly asked Congress to send more aid to state governments, citing the $3 trillion relief package unveiled this week by House Speaker Nancy Pelosi, a California Democrat. The measure, dubbed the Heroes Act, contains $500 billion in state support and $375 billion for local governments.

"It's not just the state of California and its governor that is making an announcement along these lines. It's governors all across this country," Newsom said. "Federal government, we need you. These cuts can be negated. They can be dismissed with your support."

Local and state governments already received $150 billion in federal funding included in the $2 trillion coronavirus bill Congress passed in late March. But that money can be used only for expenses incurred to fight the pandemic, not for other budget gaps.

States are contending with major tax-revenue shortfalls after stay-at-home orders crippled the economy across the US. Deficits could total $650 billion over three years, according to an estimate from the Center on Budget and Policy Priorities, a left-leaning think tank.

These budget gaps are forcing states to look at laying off workers and cutting funding for education, public colleges, health and human services, parks and recreation, and even public safety.

In Ohio, Republican Gov. Mike DeWine said earlier this month that the state will slash $210 million from Medicaid, $300 million from K-12 education and $110 million from higher education to help close an estimated $777 million shortfall.

California's tax revenues are projected to decline more than 22%. The state estimates that unemployment will peak at nearly 25%.

The $203 billion budget proposal contains $14 billion in spending cuts -- including a 10% reduction in state workers' salaries and in higher education support -- that would automatically be eliminated if the federal government provides more relief. Newsom would also use part of the state's record $16 billion rainy day fund to offset some of the downsizing.

Oregon Coronavirus Cases

Data is updated nightly.

Cases: 195884

Reported Deaths: 2590
CountyCasesDeaths
Multnomah38744593
Washington25768233
Marion22259309
Clackamas17723214
Lane13154149
Jackson10959141
Deschutes920075
Umatilla823684
Linn503468
Yamhill450376
Klamath449464
Polk379453
Malheur353063
Josephine337271
Douglas330971
Benton313320
Jefferson222237
Coos209835
Columbia176029
Union145123
Lincoln138921
Wasco138428
Hood River119631
Crook114022
Morrow111316
Clatsop9958
Baker96014
Tillamook6523
Curry64710
Grant5236
Lake4557
Harney3498
Wallowa1855
Gilliam631
Sherman581
Wheeler321
Unassigned00

California Coronavirus Cases

Data is updated nightly.

Cases: 3769827

Reported Deaths: 62699
CountyCasesDeaths
Los Angeles123756124120
Riverside2997934594
San Bernardino2972614724
San Diego2791453742
Orange2712965031
Santa Clara1190982098
Kern1093201376
Sacramento1051641693
Fresno1019871690
Alameda881571668
Ventura811021017
San Joaquin733101394
Contra Costa68976805
Stanislaus623101061
Tulare49830840
Monterey43662382
San Mateo42063570
San Francisco36808546
Santa Barbara34391459
Solano33011253
Merced31919461
Sonoma30071321
Imperial28516729
Kings23017246
Placer22720293
San Luis Obispo21308260
Madera16483242
Santa Cruz16275206
Marin14079227
Yolo13938211
Shasta12175226
Butte12140192
El Dorado10193113
Napa989182
Sutter9445113
Yuba628549
San Benito607463
Lassen570624
Tehama559063
Nevada475575
Tuolumne413967
Humboldt413542
Mendocino412749
Amador366747
Lake348943
Glenn240125
Siskiyou225525
Colusa223616
Calaveras213654
Inyo142838
Del Norte13988
Mono12844
Plumas7186
Modoc5014
Mariposa4507
Trinity4025
Sierra1120
Alpine880
Unassigned360
Medford
Partly Cloudy
63° wxIcon
Hi: 68° Lo: 47°
Feels Like: 63°
Brookings
Partly Cloudy
52° wxIcon
Hi: 64° Lo: 48°
Feels Like: 52°
Crater Lake
Mostly Cloudy
63° wxIcon
Hi: 46° Lo: 28°
Feels Like: 63°
Grants Pass
Partly Cloudy
63° wxIcon
Hi: 69° Lo: 49°
Feels Like: 63°
Klamath Falls
Partly Cloudy
56° wxIcon
Hi: 62° Lo: 37°
Feels Like: 56°
Cool & windy Wednesday with shower chances
KDRV Radar
KDRV Fire Danger
KDRV Weather Cam

Community Events