Gov. Gavin Newsom raised his estimate of the state’s budget deficit from $38 billion in his January budget proposal to $44.9 billion in his May Revision released May 10. The plan would spend $187 billion from the general fund for fiscal year 2024–25, which begins on July 1. The California Constitution mandates the budget must be passed by lawmakers by June 15.
But the $44.9 billion immediately is reduced by $17.3 billion, the revised budget explains, thanks to a deal he made a month ago with Assembly Speaker Robert Rivas (D-Hollister) and Senate President pro Tem Mike McGuire (D-Healdsburg).
That leaves $27.6 billion. We’ll have to wait until the nonpartisan Legislative Analyst’s Office releases its own analysis next week to get a more accurate picture. In February, the analyst’s office pegged the deficit at $73 billion. Whatever the actual enormity of the deficit, it’s a shocking flip from the $97 trillion surplus two years ago.
Hellbound and Down 