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California Governor Gavin Newsom Navigates Budget Crisis Amid Revenue Shortfall

California Governor Gavin Newsom Faces Budget Crisis as Tax Revenues Fall Short

Governor Newsom Collaborates with Legislative Leaders to Tackle Budget Crisis

According to Scabee, California Governor Gavin Newsom is facing big problems as the state deals with not having enough money. The latest information from the Department of Finance shows that the state has $5.8 billion less than expected in tax money so far this year. A lot of this comes from people not paying as much personal income tax as they thought they would and companies not paying as much in taxes either.

Newsom has to figure out a new plan for how the state should spend its money by May 14th. He has to work with other important people in the government like Assembly Speaker Robert Rivas and Senate President Pro Tem Mike McGuire. They have to agree on the new budget by June 15th and it starts on July 1st. The new plan will likely have to say that the state will get less money than they thought but they’re not sure exactly how much less. They want to make sure they get all the information they need before making any decisions

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California Governor Gavin Newsom Navigates Budget Crisis Amid Revenue Shortfall (PHOTO: CALL MATTERS)

Divergent Deficit Projections Highlight Budget Uncertainty in California

The numbers from Newsom’s team and the Legislative Analyst’s Office don’t match up. Newsom said in January that the state would have a $38 billion deficit but the Legislative Analyst’s Office said in February it could be as high as $73 billion. This shows how hard it is to know exactly how much money the state will have. It’s important for the government to understand these challenges so they can make the best decisions for everyone in California.

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