CALIFORNIA, USA — California is facing an up to $73 billion budget deficit, and lawmakers are taking early action by announcing $17 billion in possible cuts.
"We're proposing to take an initial step now to reduce the deficit amount and then make the truly hardest choices over the spring," said state Senator Scott Weiner.
Just a few years ago, California had a $97 billion surplus. It was so much money that the state gave back cash to Californians via the Middle Class Tax Refund. However, the state is now facing a deficit. Officials said tax receipts were lower than expected, and victims of flooding after severe winter storms were given until October to file their taxes.
Senate Budget and Fiscal Review Committee Chair Scott Wiener provided a warning about some of the hard choices ahead.
"We're going to have to make some painful choices," he said. "We've made a lot of progress in recent years around childcare and support for the middle class, and infrastructure investment, in climate and housing. We want to do everything we can to try to protect that progress and not slide back, but there are going to be hard choices."
The Legislative Analyst's Office report offers several suggestions, even saying, "In facing budget problems of similar magnitudes, the state in the past has made reductions to employee compensation and lowered spending on higher education and the judicial branch."
Weiner added that tax increases would be unlikely.
"Tax increases are not the easiest thing in the world. In Sacramento, it requires a two-thirds vote, and I'm not optimistic that we will see tax increases this year to help reduce the deficit," said Weiner.
In a recorded video statement, Republican State Senator Roger Niello, of Fair Oaks, blasted lawmakers' spending in recent years as unsustainable.
"We need to reduce the amount of money we're spending and ensure the efficiency of every dollar spent, while minimizing potential cuts in critical areas such as education, health and public safety," said Niello.
Governor Gavin Newsom released a statement saying, "The deficit we're facing this year will require big solutions, and I appreciate the Senate's plan to close California's budget deficit by $17 billion. I look forward to seeing this proposal move forward quickly."
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