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Newsom unveils his 2020-21 budget proposal

Governor Gavin Newsom
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SACRAMENTO, Calif. — With a plan to close a budget gap of more than $54 billion as a direct result of the COVID-19 recession, Governor Newsom today unveiled and in detail explained his 2020-21 May Revision budget for this fiscal year.

His latest budget proposal is his proposed response to economic changes that have taken place this far, since Jan. up to May, including the devastating toll COVID-19 has taken on our residents and our economy.

The budget deficit of $54 billion for exceeds the size of the $16 billion set aside in the state's Rainy Day Fund, thus will garner budget cuts across various programs in the state while also keeping in tact and protecting public health and safety and public education.

In an effort to properly protect public health and safety and public education the budget revision projects $44.9 billion taken down from the General Fund to support education, both at grade school level and higher education.

The governor is proposing sharp cuts, a 10% state employee pay reduction and a gradual draw-down of the state’s record rainy day reserves as part of the state budget.

To offset the difficulties presented by COVID-19 in the realm of learning loss, the budget predicts that approximately $4.4 billion will be needed to address this issue while also supporting summer school programs and further programs created by school closures.

COVID-19 has hit some Californian's harder than others, specifically families living paycheck to paycheck. They May Revision commits to keep in tact the Earned Income Tax credit which provides relief to families living along the poverty line and also includes a credit for families with children under the age of six.

The Legislature must act by mid-June, in time for the new fiscal year that begins July 1. Newsom says many of the most damaging reductions could be eased if the federal government approves a proposed financial rescue plan for states. 

The CalWORKS program will not be cut in anyway.

Newsom has made a commitment of bringing $1.3 billion in federal funding down to protect to protecting health and human resources to counties.

Newsom's proposal also includes a 10% contribution of wages in government officials to help mitigate issues created in the budget defecit by the pandemic.

Lastly, within the last 24 hours, sadly 98 people have lost their lives due to COVID-19 related deaths.

Check here for more details on the May Revision.

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