California Faces Deep Budget Cuts as Newsom Proposes Austerity Measures

Governor Gavin Newsom unveils a plan involving significant spending reductions and no new taxes to address a projected $27.6 billion budget deficit.

Newsom's budget proposal includes $13.7 billion in cuts to ongoing programs and the elimination of 10,000 vacant state jobs.
Core social services and education remain largely protected, despite the financial strain.
The plan also involves using $21.5 billion from state reserves and rethinking future budgeting strategies to stabilize finances.
No tax increases are proposed; instead, Newsom emphasizes the need for a broader overhaul of the state's tax system.
California's fiscal challenges are compounded by lower-than-expected tax revenues and ongoing economic pressures.