Golden State Today

Governor Gavin Newsom, Senate President pro Tempore Mike McGuire, and Speaker of the Assembly Robert Rivas have announced an agreement on $17 billion in early actions to significantly reduce the existing shortfall in California's budget. The package aims to best position the state to responsibly address the budget in June by focusing on closing the gap and protecting core programs.

Governor Gavin Newsom expressed gratitude towards the legislative leaders for their collaboration in addressing the shortfall, stating, “We are able to meet this challenge thanks to our responsible fiscal stewardship over the past years, including record budget reserves of close to $38 billion." Newsom emphasized the importance of continuing to work together to build a better future for California.

Senate President pro Tempore Mike McGuire commended the early action agreement as a critical first step in shrinking the state's shortfall, stating, “We are all committed to delivering an on-time balanced budget." McGuire also mentioned that the Senate will be developing a final action budget plan later in the Spring to tackle the remaining deficit and adopt an overall state budget.

Speaker of the Assembly Robert Rivas praised the Assembly Democratic Caucus for their commitment to a transparent and deliberative budget process, highlighting the importance of freezing some undisbursed, one-time spending to preserve more options in June. Rivas expressed confidence in working with the Governor to deliver real solutions for hard-working Californians.

The package includes a mix of reductions, revenue and borrowing, delays and deferrals, and shifts of costs from the general fund to other state funds. The budget bill containing the package will be going into print soon and will be vetted by legislative budget committees early next week. A vote on the budget bill is planned in the Assembly and Senate for Thursday, April 11.