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Gov. Gavin Newsom and legislative leaders reached a nearly $300 million budget agreement on Saturday that closes a $46.8 deficit that was projected for the coming fiscal year with across-the-board cuts of nearly 8% to every department.
The $297.5 billion budget is proposed for both the 2024-25 fiscal year and the 2025-26 fiscal years, a maneuver the governor in May called a “budget year, plus one” proposal that he said would help bring spending in line with revenue projections over the next two years.
“This agreement sets the state on a path for long-term fiscal stability – addressing the current shortfall and strengthening budget resilience down the road,” Newsom said. “We’re making sure to preserve programs that serve millions of Californians, including key funding for education, health care, expanded behavioral health services, and combatting homelessness.”
The gap was closed with a combination of $16 billion in cuts and other financial tricks, …