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Newsom says California budget deficit is a direct result of Covid-19

California Gov. Gavin Newsom on Sunday said the nea...

Posted: May 18, 2020 3:33 AM

California Gov. Gavin Newsom on Sunday said the nearly $54 billion budget deficit the state is facing is a direct result of the impact from the coronavirus pandemic and not because of existing financial troubles.

Asked by Jake Tapper on CNN's "State of the Union" how much of the state's financial crisis is a result of pre-exisiting financial obligations, Newsom said, "None."

"None. That $54.3 billion is a direct result of Covid-19. Just a few months ago, I introduced my January budget, but with, again, a projected surplus. We paid off 100% of our debt we had inherited over seven or eight years ago. We were using $9.13 billion of the surplus last year to pay down long-term pension obligations," Newsom said.

The Democrat's comments come days after he announced a grim budget plan that would slash state funding for education and other programs to make up for a shortfall due to the pandemic. Newsom previously announced a $5.6 billion budget surplus, but the state is now contending with a $54.3 billion deficit that they must close before the next fiscal year starts on July 1.

Newsom, along with governors in Washington, Oregon, Colorado and Nevada, have asked Congress to send more aid to state governments.

Newsom told Tapper the aid given to states is "not charity" and again called for federal assistance.

"We have been managing our budget effectively, efficiently, paying down our long-term pension obligations. We had a bond rating that went up twice last year, the highest in decades," he said. "So we're not looking for charity. We're not looking for handouts. Social responsibility at a time when states, not just California, large and small, all across this country, cities and counties, large and small, all across this country, are facing unprecedented budgetary stress. It is incumbent upon the federal government to help support these states through this difficult time."

The Trump administration and Senate Republicans are currently resisting further federal economic spending.

The House of Representatives on Friday passed a sweeping bill to spend more than $3 trillion for Covid-19 relief. The legislation, which was not a product of bipartisan negotiations, would stand as the largest relief package in US history.

House Democratic leaders argued that the package, which allocates funding for state and local governments, coronavirus testing and a new round of direct payments to Americans, is urgently needed to address the crisis. Republicans however have made clear that it is dead on arrival in the GOP-controlled Senate.

Oregon Coronavirus Cases

Data is updated nightly.

Cases: 78160

Reported Deaths: 953
CountyCasesDeaths
Multnomah18149245
Washington10929103
Marion9634147
Clackamas672781
Lane450747
Umatilla446850
Jackson401737
Deschutes251715
Malheur245945
Yamhill179717
Linn160023
Polk133219
Douglas98119
Klamath9265
Jefferson87411
Benton8457
Union8098
Morrow6717
Lincoln66515
Josephine5785
Wasco54319
Columbia5394
Coos4533
Hood River4303
Clatsop3730
Baker2914
Crook2446
Tillamook1470
Curry1462
Lake1431
Grant1381
Harney1041
Wallowa723
Gilliam230
Sherman230
Wheeler60
Unassigned00

California Coronavirus Cases

Data is updated nightly.

Cases: 1265182

Reported Deaths: 19410
CountyCasesDeaths
Los Angeles4141857740
San Bernardino966571136
Riverside885301444
San Diego846381035
Orange805511578
Kern42614449
Fresno39004488
Sacramento38999586
Santa Clara35945486
Alameda30330520
San Joaquin26432510
Contra Costa24914261
Stanislaus22624430
Tulare21645312
Ventura20604185
Imperial16429356
Monterey15835123
San Francisco15797160
San Mateo14812170
Sonoma12662160
Merced12281182
Santa Barbara11631137
Kings1143489
Solano1095781
Marin7840129
Placer679471
Madera642786
San Luis Obispo634538
Shasta518750
Yolo502081
Santa Cruz463829
Butte419560
Sutter363719
Napa312418
El Dorado25814
Yuba222110
Lassen21823
San Benito196817
Tehama177326
Mendocino163223
Nevada141410
Tuolumne11049
Glenn98910
Lake97120
Humboldt9499
Colusa7476
Siskiyou7373
Amador66616
Mono5503
Calaveras54422
Del Norte3571
Inyo30816
Plumas2300
Trinity1680
Modoc1560
Mariposa1443
Alpine510
Sierra230
Unassigned00
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