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SW Riverside News

Thursday, January 9, 2025

Governor's proposed budget faces criticism amid projected deficit

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State Senator Kelly Seyarto, District 32 | Official U.S. Senate headshot

State Senator Kelly Seyarto, District 32 | Official U.S. Senate headshot

The Governor has unveiled a $291 billion budget proposal for the fiscal year 2024-2025. The state is facing a significant deficit, with the independent Legislative Analyst Office (LAO) projecting it to exceed $68 billion. However, the Governor anticipates a $39 billion shortfall. This marks a stark contrast from the $97 billion surplus reported two years ago.

The past decade of supermajority rule has seen California's budget grow significantly without proportional population growth. General Fund spending has increased from $86 billion to $222 billion, more than doubling in size. Concerns have been raised about whether this increase in spending has translated into improved quality of life for residents.

In recent years, California has introduced over $17 billion in new government programs and expenses. Despite spending $22 billion on addressing homelessness since 2019, the number of homeless individuals has risen from 130,000 to over 181,000. Additionally, recent healthcare legislation that increased wages for hospital workers added a $2 billion cost not included in the current budget proposal. Expanding Medi-Cal coverage for undocumented immigrants is projected to cost taxpayers over $4 billion annually.

There is growing frustration among Californians who feel they are paying more but receiving less in return. State spending continues to rise while issues remain unresolved and crises persist. Critics argue that funds should be allocated towards infrastructure projects such as road safety improvements, rainwater capture systems during heavy rainfall years, wildfire damage prevention measures, and educational investments.

Some lawmakers propose common-sense solutions to address these spending challenges and urge collaboration with the majority party to alleviate financial burdens on Californians struggling with rising prices and inflation. They call for passing a responsible and balanced budget that curbs excessive spending.

The January budget proposal serves as an initial draft followed by revisions in May and subsequent debates before finalization in June.

To access the full budget proposal, visit: https://ebudget.ca.gov/

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