Gov. Gavin Newsom wants to slash 10,000 jobs, reduce state deficit

May 10, 2024

By KAREN VELIE

California Gov. Gavin Newsom announced plans Friday to reduce the state’s budget deficit by slashing 10,000 vacant jobs and cutting spending.

Through his revised budget proposal, Newsom plans to close both this year’s remaining $27.6 billion budget shortfall and next year’s projected $28.4 billion deficit while preserving key services, including education, housing, health care and food assistance. Newsom plans to tighten the state’s belt by eliminating state jobs and cutting spending across 260 state programs.

Newsom’s revised balanced state budget cuts one-time spending by $19.1 billion and ongoing spending by $13.7 billion through 2025-26. Newsom plans to reduce costs by streamlining procurement, cutting bureaucratic red tape, and reducing redundancies.

Because of a revenue spike from fiscal year 2019-2020 to fiscal year 2021-2022, the Budget Acts of 2021 and 2022 were based on inaccurate forecasts.

“Difficult decisions regarding spending reductions are necessary to create a path for long-term fiscal sustainability,” according to Gov. Newsom. “Making these decisions now will significantly reduce the risk of more difficult decisions in the months and years ahead that could have substantial effects on core state programs and services.”