Californians react to Newsom's plan to dig state out of budget deficit

SACRAMENTO — Getting California back on financial track is going to take massive cuts and the redirection of state funds.

This weekend, Governor Gavin Newsom announced a new deal with lawmakers to balance a $46.8 billion deficit which includes over $700 million in cuts to health care worker programs and a delay to expected pay raises next month.

Homelessness is among those investments seeing major budget wins, with an extension of a local homelessness program that got the green light for a sixth round of $1 billion dollars in funding. It's money one business owner in Sacramento doesn't see translating to actual change in the number of people who are homeless.

"I come back and forth from the Bay Area to Sacramento. I've never seen so many homeless ever. What's this, L.A. now?" said Rashaan Reed, who owns FreezeWorld on J Street downtown. "How can you have a flourishing county if you're not trying to help small business owners."

Reed wants to see a more specialized approach to how money is spent in Sacramento and specific cities.

"See what they're talking about, what they're funding, where that money is going. Ask 'What are you doing with our money?' We need some over here in this sector," Reed said.

Others like Veronica Golub, an animal rights advocate, don't feel like Newsom is making good on other promises made neglected from the budget.

"Governor Newsom wanted California to be a no-kill state by 2025 and we are literally going in the opposite direction right now," Golub said.

The budget also calls for massive investments in childcare facilities and a program that makes investments in financial aid for low- and middle-class college students.

The budget now moves to the full legislature which is expected to vote on it sometime this week. If passed, the budget takes effect July 1, 2024.