California has a big problem with $27.6 billion less money than it needs, so Governor Newsom wants to cut 10,000 empty state jobs and stop some business tax deductions to try to fix it. He’s also worried about next year’s budget which might be even worse but he doesn’t want to raise taxes for everyone to fix it because that could cause more problems.
Governor Newsom Proposes Drastic Measures to Tackle California’s $27.6 Billion Budget Deficit without Raising Taxes
According to CBS News, California is in big trouble with a $27.6 billion budget deficit so Governor Newsom has a plan to fix it. Governor Newsom wants to cut 10,000 empty state jobs and stop some tax deductions for businesses to help deal with the deficit. This deficit is the biggest of any state and it’s because the state’s money has been going down due to things like inflation and a slowdown in the technology industry.
Governor Newsom‘s plan isn’t just for this year’s deficit; he’s also thinking about the one for next year which is expected to be about $28.4 billion. To make things work, Governor Newsom wants to make cuts of over $32 billion saying it’s important to spend money responsibly. But there’s a disagreement about how big the deficit is, and it might be even larger than what the governor thinks. Despite this, Newsom is determined not to raise taxes for everyone to solve the problem.
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California’s $27.6 Billion Budget Deficit: Governor Newsom Proposes Drastic Measures to Plug Gap – Including 10,000 Job Cuts and Tax Suspensions! (PHOTO: Silicon Valley)
California’s Budget Relying on Rich, Unpredictable Economy, Prompting Tough Decisions for Stable Financial Future
Furthermore, California’s budgeting is tricky because it relies heavily on money from rich people and the economy can be unpredictable. Last year, they got the predictions wrong because of storms and delays in filing taxes. Even though they’ve come up with some ways to save money like cutting spending and using savings, it might not be enough. With taxes from companies dropping and uncertainty about income taxes California’s financial future looks uncertain, and tough decisions will need to be made to keep the state’s economy stable.
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