Newsom’s Budget Proposal Slashes State Jobs, Program Funding To Close State’s Deficit

California Gov. Gavin Newsom (D) has proposed a $288 billion state budget for the 2024-2025 fiscal year, which includes cutting thousands of vacant state jobs and reducing funding to more than 200 state programs in an effort to close the state’s $27.6 billion deficit.

The announcement comes after state officials agreed to reduce California’s deficit by $17.3 billion last month following Newsom’s January announcement that the state’s deficit was $37.9 billion. The actual state deficit ended up being closer to $45 billion, $7 billion more than initially estimated by Newsom and state officials.

“These are programs, propositions that I’ve long advanced — many of them,” Newsom explained. “But you’ve got to do it. We have to be responsible. We have to be accountable.” The proposed cuts include $2 billion for broadband expansion, $500 million for improving the state’s water storage system, $272 million for enhancing employment services for California’s welfare system and closing housing units with more than 4,000 beds across 13 state prisons, saving nearly $81 million.

As the state faces an estimated deficit of $28.4 billion for next year, Newsom emphasized the importance of solving the deficit not only for the current year but for the following year as well. “We know what we know, but we don’t know what we don’t know,” Newsom said. “This is I believe why we need to have a two-year mindset going forward.”