Gov. Gavin Newsom today unveiled a revised state budget that reflects the economic devastation wrought by the COVID-19 pandemic, shaving $19 billion off the January spending plan he released when state coffers were brimming with money.
The revised plan reflects a 22% drop in revenue and calls for general fund spending of $133.9 billion, down from $153 billion in January. The total state budget is pegged at $203 billion, a $19 billion drop from just four months ago.
It cancels $6.1 billion in program expansions that were in his original budget, asks state workers to take a 10% pay cut and orders state agencies to shave 5% off spending in general.
"This is no normal year. And this no ordinary May Revision," Newsom noted in his message to the Legislature.
"I am proposing a fiscal blueprint to fund our most essential priorities — public health, public safety and public education — and to support workers and businesses, especially small businesses, who are the lifeblood of our economy. California will do its part to keep our communities healthy and safe, to shorten the economic shadow of the current crisis, and build a bridge to recovery and renewal," he wrote.