Facing $54.3 billion deficit, California declares budget emergency

June 26, 2020

Faced with a $54.3 billion deficit, the state of California declared a budget emergency on Thursday that will allow the use of reserve funds in response to the ongoing coronavirus crisis.

Gov. Gavin Newsom issued a proclamation of a budget emergency that he says will clear the way for the California Legislature to pass legislation allowing the state to draw from its rainy day fund, the Budget Stabilization Account. The Budget Stabilization Account currently consists of $16.1 billion in reserves, according to Newsom’s proclamation.

The state must use a portion of the reserves in the 2020-2021 fiscal year, which begins next week, in order to address the coronavirus pandemic, according to the proclamation.

Newsom’s office said in a press release the proclamation will ensure the availability of funding for medical and personal protective equipment; services for vulnerable populations; and expenditures that would arise from a potential surge in coronavirus hospitalizations.


Loading...

20
Leave a Reply

Please Login to comment
panflash

“Facing $54.3 billion deficit, California declares budget emergency”


Wow, now THERE’S a real shocker, huh? Who ever wouldda guessed that, huh?


An interesting article detailing the timeline of Detroit’s slide into the largest municipal bankruptcy in American history:


https://www.reuters.com/article/usa-detroit-timeline-idUSL1N0FP00F20130719


One excerpt from the article in 2013:


“- On Feb. 19 the review team concluded that Detroit faced a fiscal emergency. The report said the city was plagued by “operational dysfunction” and that it continues to deplete cash reserves and faces a cash deficit of $100 million by June 30 without significant spending cuts.”


Borrowing from reserves to fund on-going expenditures is an early warning signal that the fiscal end is near. And no- no one in the state government is going to do a damn thing to stop it.


incompingov

Bankruptcy Baby!!! Would be the best thing that ever happened to this state!!!


womanwhohasbeenthere

But don’t worry, no state employee will lose his job and no state retiree making 6 figures in retirement will ever see a cut in that. Ditto for the city of SLO – no one laid off, just more fees to cover their salaries.


It is time to set limits on state and city pensions. Half the SLO city budget goes to pensions, many of which are in well in excess of $100,000 /year. I don’t know too many people in the private sector with that kind of guaranteed retirement. It should be limited, say to $104K per year – surely someone can live on $2K a week in retirement after working for years and hopefully setting aside some savings. That would be a substantial savings to the city and state government without cutting services and is still a better deal than anyone I know just working a middle class job.


Francesca Bolognini

What all the posts so far have in common is a blame game on the current majority in state government for the expenses of situations that you your selves state you would prefer were not controlled or are pretending don’t exist. Wow. How productive. Also failure to take into account the fact that this state is usually a large contributor to the federal budget, whilst those states run by “red” governments are constantly on the take, often to the tune of DOUBLE the money they send to the federal coffers.


But what is to be expected from the usual suspects with nothing better to do than whine and throw insults from behind their safe little anonymous screen name? What could be more pathetic? You are sitting in a glass house throwing stones at your own windows.. But you don’t care how you sound, since you don’t actually identify yourselves. Makes me wonder what you would end up doing if you didn’t have this outlet for your constant stream of insults and inanities. Look it up.


sunister1

Makes me wonder if you are one of those state workers I mentioned.


jdchem

What all the posters to this article have in common is grumbling and complaining. Allow me to grumble and complain. Grumble and complain. Also, every other state does it worse than California. So that makes California’s government righteous.


horse_soldier

Whew, it’s a good thing Gavin worked such a sweet deal on those masks!


shelworth

Shut down the train project, fire all involved, sell all the assets.


Jorge Estrada

Hey Gavin, ask your Aunt Nancy Pelosi what to do. This could be a family dinner table discussion, almost like a state of nepotism report?


sunister1

A recent Forbes article stated that California had “340,000 Public Employees With $100,000+ Paychecks”

No wonder this state is in trouble.


incompingov

Yes. That is a shocking statistic. More shocking is that salary’s of this magnitude are paid to so

many state workers. Are the taxpayers getting their money’s worth? Look around. The actual taxpayers seem to get a dime return on a dollar spent.


derasmus

If you think that is shocking, check out the salaries of SLO City public employees. For such a small town…makes State salaries look like a pittance.Especially police and fire, whew!!


See,Transparent California W.E.B. site.


kayaknut

Step One: Completely cancel the Bullet (non-bullet) train to nowhere.


DocT

This is EXACTLY what will happen.


1. States of Emergency will be declared. Fires and Covid.

2. FEMA money and federal disaster relief will flood the state and replenish the state coffers.

3. Taxes on those foolish enough to produce taxable income in CA will be massively raised.


This is the order of events. Since states cannot use the printing press to make more money, they must rely on the federal printing press and Emergency Declaration to get some of the money.


When fires are lit, they will most certainly burn down houses and businesses in a frightful manner.

Covid will be hyped, amped, trumpeted and misoverexaggerated. Cuomo had it right in New York when he forced Covid+ folks into nursing homes. That’s how you get the numbers needed for a cash-dripping state of emergency.


Covid cases will get money to counties and cities…..Fires will get money to the state.


We simply need a few disasters. They’re 100% forecasted to happen…..


mercut1469

Your incessant cynicism reminds me of something Barton Olsen told me back in the early 1970’s. Barton was a longtime history professor at Cal Poly as well as being quite the gourmet cook and a classical pianist to boot. Talented man.


Anyway, to paraphrase, he would admit that sarcasm was needed. But, it should be used sparingly, like a particularly strong spice, such as garlic or curry, in cooking. Too much spice, or derision, and the dish, or discussion, would be overwhelmed.


Similarly, however, an occasional dash of spice, or irony, would add a new dimension to a dish, or conversation. It was up to the cook to decide whether they wanted something tasty or simply an over seasoned jumble of bitterness.


incompingov

Massive budget deficit… maybe, just maybe, this will force the Democrats, who run the state, to finally stop the endless spending on things that don’t help the real taxpayers. Or maybe they’ll just decide they MUST simply increase taxes of all types, on all those out of work people sitting at home now. Yeah. That’s what needs to be done. Just wait.


sunister1

What they are looking for is an Uncle Sam bailout.


SLOGROWN

B-I-N-G-O!! incompingov…….