For Immediate Release: May 10, 2024
Contact: Tyler Bushnell, tyler.bushnell@nextgenpolicy.org

After forecasting a state budget deficit of roughly $38 billion in January due to declining state revenues, Governor Newsom’s May Revision projects a significant further $7 billion shortfall and proposes major cuts to programs.

SACRAMENTO – Today, Governor Newsom unveiled the May Budget Revision, which provides an update to his January budget proposal and, as expected, shows further deterioration in the state revenue picture. To address this additional $7 billion budget shortfall, the May Revision outlines a series of actions to balance the budget including significant program cuts and implementation delays, a statewide hiring freeze, fund shifts, and the use of reserves.

Following the $17.3 billion in early budget actions taken by the Governor and State Legislature a few weeks ago, California’s budget deficit now totals $27.6 billion. The deficit results in reductions to many programs that affect all Californians as well as initiatives that are part of NextGen’s priority list including: the California Climate Commitment, Cal Grant Reform, programs to fight food insecurity and expand access to health care, the Broadband for All digital equity initiative, and beyond. Moreover, it should be noted that NextGen legislative priorities with a fiscal impact working their way through the legislative process also stand to encounter a higher level of fiscal scrutiny.

Budget deficits have real impacts on the economic and social well-being of Californians throughout our state, particularly those from vulnerable communities. Budget deficits must be navigated pragmatically and properly or they can have unintended consequences and long-lasting effects on the implementation of key programs in the future. Our preliminary review of how the Newsom Administration proposes to balance the budget indicates that the approach they have taken is to protect and preserve, to the extent feasible, and also to try and stay the course on important Administration initiatives. However, let’s be clear, the size of the budget shortfall makes this a very difficult task.

Below find NextGen California’s Executive Director Arnie Sowell’s response to the Governor’s May Revision and how the budget deficit will affect our legislative advocacy and program delivery work in the coming year:

Statement from NextGen California Executive Director, Arnold Sowell Jr.:

“With the release of Governor Newsom’s May Budget Revision, the NextGen team now has a clearer picture of the state budget landscape and how the significant lack of funding harms our fight on behalf of California’s most vulnerable populations,” said Arnold Sowell Jr. “Despite this negative fiscal outlook, NextGen California remains committed to our policy, program delivery, and advocacy work and will remain unwavering in our fight to address environmental, social, racial, gender, and economic inequities that impact California’s frontline communities. We look forward to making the most of this year’s tight budget and will proceed with our advocacy and programmatic work in partnership with the Legislature and the Newsom Administration in the months ahead.”

NextGen’s Climate 100 Project also released a separate statement reacting to the cuts to the California Climate Commitment.

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The mission of NextGen California is to fight for progressive policy change to address environmental, social, racial, gender, and economic inequities in California through justice-centered legislative advocacy, grassroots partnerships, and democratic civic engagement.