Overview

• Governor Newsom's initial deficit projection of $38 billion was revised to $74 billion based on nonpartisan analysis.
• The budget shortfall has led to significant cuts, including reductions in health care, education, and climate programs.
• Advocacy groups criticize the cuts, arguing they disproportionately affect low-income and vulnerable populations.
• Newsom's plan includes eliminating unfilled government positions and reducing state operations by 8%.
• The governor has ruled out general tax hikes, opting instead for a mix of spending cuts, deferrals, and reserve funds.