CALIFORNIA, USA — In just a matter of hours, Governor Gavin Newsom will reveal the state's budget shortfall is even more than the $22.5 billion announced back in January.
The shortfall could be almost $30 billion.
"It will certainly be in that neighborhood without putting a fine point on it. It will definitely be in that neighborhood, yes," said H.D. Palmer, spokesperson for the California Department of Finance
Last year, California had a $97 billion surplus. It was so much money the state gave back case to Californians in what was called the Middle Class Tax Refund. However a year later, the state is facing a deficit.
As for why, ABC10 is told tax receipts through March are $4 billion lower than expected and victims of flooding after those back to back winter storms were given an extension until October to file their taxes.
However, lawmakers still have to pass a budget by June.
"One thing I can tell you without getting too far ahead of the governor, there will be no broad-based tax increases in this budget to close this shortfall. That's not going to happen," said Palmer.
Just this week, hundreds of California nurses marched to do more to address staffing shortages. Their list of demands require a half a billion dollars to invest in nursing schools to lower tuitions.
"There's going to be a whole lot of nurses retiring. In the next few years, the staffing is only going to get worse, and then putting money into the schools and kind of giving a clear path into the education will really help us and this will benefit everyone," said Lorra Tiyaban, ICU nurse.
Officials admit tough decisions will need to be made.
"I don't want to suggest for a minute that there aren't going to be tough decisions," said Palmer. "By definition, if you close a budget gap of the size that the state has to deal with, there are going to be tough decisions. But unlike the past where we had those deep and wholesale reductions that had to go on the table more, this time we are talking about pulling back on projected spending as opposed to cutting into muscle, cutting in towards the bone."
The governor presents his final budget tomorrow at 10 a.m.
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