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As revenues plummet, California budget cuts billions

California

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom is proposing canceling $6.1 billion in planned spending increases from a variety of programs as part of next year’s budget.

He says the budget revision prioritizes education, health and safety, but there are still deep cuts to those programs.

The budget also calls for 10% pay cuts for state employees, which the governor says includes him and his staff.

Republican Sen. Jim Nielsen of Red Bluff says the budget relies too much on money California hopes to get from the federal government and doesn’t include enough long-term efficiencies.

Newsom plans to tap the state’s $16 billion rainy day fund over three years to soften the blow. 

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