Governor Newsom Forced to Slash Climate and Housing Funds

Photo byAlexander GreyonUnsplash

• California Governor Gavin Newsom proposes cuts in climate change, housing, and clean energy programs to address a $38 billion budget deficit.
• The budget plan includes utilizing $13 billion from reserves, reducing $8.5 billion in program spending, and deferring certain expenditures.
• Despite the deficit, Newsom commits to maintaining major previous spending commitments, including free kindergarten and health insurance for low-income adults.

In an effort to manage California's estimated $38 billion budget deficit, Governor Gavin Newsom has put forward a plan that includes significant cuts to climate change, housing, and clean energy programs.

The proposal is part of the new $291 billion state spending plan for the 2024-25 budget year. These measures are a response to the state's financial shortfall, which the nonpartisan Legislative Analyst's Office initially predicted to be $68 billion, a figure Newsom claims is overstated.

To cover the deficit, Newsom suggests using $13 billion from state reserves and reducing program spending by $8.5 billion, with a focus on deferring some expenses to future years. Notably, around half of these cuts would affect various housing and climate programs. Despite these reductions, Newsom is determined to uphold his major spending commitments, including free kindergarten for all four-year-olds and free health insurance for low-income adults, regardless of their immigration status. However, he suggests the possibility of delaying a planned minimum wage increase for healthcare workers in years of insufficient budget.

The Governor's plan involves cutting $2.9 billion in climate change spending and postponing $600 million in spending for programs aiding motorists in switching to hybrid and zero-emission vehicles. While some spending, such as the $1.4 billion plan for conserving state lands and coastal waters, is maintained, other investments like solar panel rebates for homeowners are delayed.

In the realm of public education, Newsom proposes a $126.8 billion allocation, which, although $2.4 billion less than last year, is bolstered by funds from a special savings account to prevent drastic cuts. The budget plan is now subject to a six-month negotiation period with the Legislature before the new budget year begins on July 1.

SOURCE