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Newsom And Democratic Leaders Close Some Of The Budget Shortfall

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Sacramento, CA — Negotiations have been taking place this week at the state capitol between Governor Gavin Newsom, Senate Democratic Leader Mike McGuire, and Assembly Speaker Robert Rivas.

While details have not been released, state government leaders announce that a compromise has been reached to address aspects of the current budget shortfall, with cost savings between $12-$18-billion.

There has been a debate as to how large next year’s projected deficit actually is, as Newsom has stated it is only $38-billion, while the non-partisan Legislative Analyst’s Office puts it closer to $73-billion.

Newsom emerged from negotiations late yesterday, stating, “Thanks to leadership in the Assembly and Senate, California is stepping up with a balanced approach that will take a significant chunk out of the projected shortfall. Despite the uncertainty due to the federal tax deadline delay last year, historic reserves and fiscal responsibility will assure a balanced budget that meets California’s needs.”

Republicans were critical of Newsom’s announcement, and scarce details. GOP Vice Chair of the Budget Committee, Vince Fong, stated, “Apparently, there’s a budget deal with no details. Hopefully, it is not covered by an NDA. Californians demand transparency.”