California’s huge coronavirus budget gap – How Gavin Newsom plans to close it

California would scale back public services, temporarily limit corporate tax credits, slash state workers’ pay and borrow from special funds to close a $54 billion deficit that has opened up during the coronavirus pandemic, under a revised budget plan Gov. Gavin Newsom unveiled Thursday.

Schools would be hit hard by required funding cuts and the state would forgo new health services that it hoped to provide for homeless and disabled Californians. More than $6 billion in proposed spending increases would be canceled, including an expansion of the state’s health care program for the poor to undocumented immigrants over age 65 and additional support for University of California and California State University.

The $203 billion proposal is nearly 9% smaller than the plan Newsom laid out in January, which would have been a record $222 billion budget with an estimated $6 billion surplus. That plan evaporated with the coronavirus pandemic, as the economy withered under a prolonged statewide stay-at-home order. Finance officials project the unemployment rate will reach nearly 25% in the coming months. …

Click here to read the full article from the San Francisco Chronicle.


  1. Maybe the election or Republican of Mike Garcia to fill the seat vacated by Democrat Katie Hill is a reflection of our CA residents “seeing” what the one-party state has done to the economy!

    For the last few decades, the CA residents have been bombarded with bizarre laws and regulations from our one-party leaders that have gotten CA into the #1 position of having the highest costs for of labor, electricity, and fuels. California’s Forecasted Budget Deficit Decades in the Making -the COVID-19 carnage on the job market has exposed decades of poor planning

    o Labor: Among the highest minimum wages
    o Electricity: Residents are already paying 50% more than the national average, and those cost will increase s CA shuts down nuclear and natural gas plants, to import more expensive electricity from other states.
    o Fuels: Californians are already paying almost $1.00 more than the national average and is the only state in contiguous America that imports MOST (58%) of its crude oil needs from foreign countries at a cost of $60 million every day. Newsom is doing everything possible to INCREASE those imports and INCREASE the outflow of moneys to foreign countries.

    Our Governor with a 70% approval rating is doing everything possible to continually INCREASE, yes INCREASE, highest costs of labor, electricity, and fuels.

    Our residents continue to re-elect the same “leaders”, so buckle up for the nosedive in the economy!

  2. tomsquawk says

    maybe he could try the pensions

  3. I plan to vote a STRAIGHT RED TICKET IN November….straight red ticket…the democraps in this state are corrupt and AS STUPID AS COW SHIT….VOTE everyone of these COMMUNISTS SYMPATHIZERS OUT OF OFFICE…Then prosecute every single one

  4. Jim Ricketts says

    For the Federal government to penalize more fiscally responsible states by sending more money to California only exacerbates the irresponsible spending by self-righteous simpletons who think “governing” is a contest to see who can shower the most beneficent gifts to the least deserving among us – minus 20% for handling.

  5. The state of California is ruining our economy by not opening up. The state is forcing Sacramento County to stay closed for until there have been no Covid deaths for 14 days!

  6. Cycleman says

    Get rid of all the duplicate agencies, California has 600 people employed just for the little proposition 65 stickers (on everything) – California State government can be cut back by 50% or more.

    It takes two or three public employees to do what one person does in the private sector, and stop giving illegal immigrants free stuff. Cut the pay of all these rich Democrat politicians by 50%; they don’t need the money.

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