California, — The revised $291 billion state spending plan for the 2024-25 budget year, which includes for a projected $37.9 billion shortfall, was unveiled Wednesday by California Gov. Gavin Newsom.
To make up the difference, Democrat Gavin Newsom suggested cutting $8.5 billion from programs, delaying some spending till the future, spreading it out over more years, and taking $13 billion out of reserves.
Over the following six months, he and the fellow members of his party who control the legislature will negotiate a final proposal. On July 1, the budget year starts.
Newsom has prioritized ending homelessness and boosting housing during his second and last term, which expires in January 2027. His plan, however, would slash almost $1.2 billion from housing assistance.
Of these, $300 million came from regional planning grants, $250 million was cut from the budget for multifamily housing construction and preservation, and another $250 million came from a program to buy and fix up buildings that were about to go into default.
Additionally, Newsom plans to postpone the allocation of $260 million in funding to municipalities and counties for initiatives to combat homelessness from the present fiscal year to 2025–26.
The management of the grant program to reduce homelessness would also lose $100 million under his watch.
The plan includes financing for kid wellness coaches and keeps spending on expanded mental health services, both of which are priorities for Newsom.