Newsom Considers Declaring Budget Emergency Amid $38 Billion Deficit

Proposed Budget Cuts Impact Climate Programs, Healthcare Workers, Homelessness Aid, and Migrant Services

• California Governor Gavin Newsom is considering declaring a budget emergency due to a significant budget shortfall, which would allow him to tap into the rainy day fund.
• Newsom's $291.5-billion budget proposal for fiscal year 2024-25 is about $20 billion less than California's budget the year before.
• Newsom's budget proposal includes cuts to climate action programs, delays to wage increases for healthcare workers, and no ongoing funding for homelessness programs.
• Newsom's budget proposal does not include funding for humanitarian services for migrants released from short-term federal custody at the border.
• The proposed budget is only the first take and will be revised in May after updated tax revenue numbers, with a final agreement due by July 1.

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