California's Budget Deficit Estimated at $58 Billion, $20 Billion More Than Governor's Estimate
Governor Newsom's plan to pull $13 billion from state’s reserves receives support, but his proposal to pull $900 million from a reserve account for low-income residents faces criticism.
- California's budget deficit for the 2024-25 fiscal year is estimated to be $58 billion, $20 billion more than Governor Gavin Newsom's estimate, according to the nonpartisan Legislative Analyst’s Office.
- Both the governor and the Legislative Analyst’s Office predict annual deficits of about $30 billion through 2027-28.
- Newsom's plan to pull $13 billion from the state’s reserves and leave about $11 billion in California’s rainy day fund is seen as a prudent move given the continued budget problems likely for future years.
- Newsom's proposal to pull $900 million from a reserve account meant to support health insurance and cash aid programs for low-income residents is criticized by the analyst’s office.
- The Legislative Analyst’s Office suggests that Newsom and the Legislature make more cuts to existing short-term programs that aren’t part of the state’s core, ongoing educational or social service commitments.
CalMatters 
The San Francisco Standard 
