California GOP lawmakers urge Newsom to call a special session to address the deficit
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The California Legislature is due to reconvene in just under three weeks. That’s not soon enough for Assembly Republicans, who are urging Gov. Gavin Newsom to call a special session to tackle the state’s projected $68 billion deficit.
Assembly Republican Leader James Gallagher, R-Yuba City, and Assembly Budget Commitee Vice-Chair Vince Fong, R-Kern County made the pitch in a letter Thursday, two days after Newsom imposed a spending freeze in anticipation of the massive shortfall.
“The Administration’s initial step to freeze spending is not enough. The budget hole is simply too massive. The Legislature must come back to take action to implement the cuts. The Legislative Analyst’s Office reports revenues to be $26 billion below 2022-23 revenue estimates, and anticipates collections to be $58 billion below Budget Act projections across 2022-23 to 2024-25,” the letter reads in part.
The lawmakers said the situation is complicated by the fact that almost half of the estimated deficit is for a fiscal year that is already over.
“Urgent action now is necessary to roll back one-time and limited-term spending programs in the current year. Californians cannot risk more financial uncertainty, so immediate action now will help maximize the effect of current year solutions, and hopefully avoid the need for more difficult solutions later,” the letter goes on to say.
The Bee has reached out to the governor’s office for a response. This story will be updated if one is received.
State lawmakers have said that “everything is on the table right now” to determine how to address the projected deficit, including the possibility of declaring a fiscal emergency, giving the Legislature access to $24 billion in general purpose reserves.
In a recent interview, Newsom said that the budget deficit will be “smaller than has been advertised,” though he did not disclose how much smaller in that interview.
Newsom is set to deliver a proposed 2024-25 budget by Jan. 10, 2024.
