Newsom Announces Budget Proposal Which Includes $6 Billion In Cuts To Environmental/Climate Change Programs

On January 10, 2023, Governor Gavin Newsom announced his 2023-2024 budget proposal, totaling $297 billion and leading to a $22.5 billion budget deficit. This deficit represents a significant change from last year's nearly $100 billion budget surplus and is largely due to inflation and dips in the stock market.

Governor Newsom chose not rely on the state's $35.6 billion in budgetary reserves, which include $22.4 billion for budget stabilization, stating he is taking "a wait-and-see approach to this budget." Instead, the budget addresses the deficit through:

• Funding delays ($7.4 billion);
• Reductions/pullbacks ($5.7 billion);
• "Fund shifts" (changing the funding source for some projects from the General Fund to other funding sources) ($4.3 billion);