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California's budget has billions in cuts to close deficit

Added 06-30-20 12:22:02am EST - “California Democratic Gov. Gavin Newsom signed a $202.1 billion budget on Monday, reflecting an economy and tax revenues hobbled by the coronavirus pandemic. The budget contains billions of dollars in cuts to state worker salaries,…” - Washingtontimes.com

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Posted By TheNewsCommenter: From Washingtontimes.com: “California’s budget has billions in cuts to close deficit”. Below is an excerpt from the article.

SACRAMENTO, Calif. (AP) - California Democratic Gov. Gavin Newsom signed a $202.1 billion budget on Monday, reflecting an economy and tax revenues hobbled by the coronavirus pandemic. The budget contains billions of dollars in cuts to state worker salaries, the court system and public colleges and universities. But that spending would be restored if the federal government sends the state more aid by Oct. 15.

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California’s budget went from an anticipated $6 billion surplus in January to an estimated $54.3 billion deficit. The remarkable reversal is blamed on the coronavirus pandemic, which caused state revenues to fall after Newsom issued a stay-at-home order that forced many businesses to close and caused more than 6.7 million Californians to file for unemployment benefits.

Temporary tax increases on businesses, mostly those that have more than $1 million in annual revenue, will raise about $4.4 billion. Another $11.1 billion will come from the state’s reserves. More than $11 billion will come from cuts to a variety of state programs - cuts that would be restored should the federal government send the state more aid by Oct. 15. And the state will delay $12.9 billion in payments to public schools. The rest comes from delaying some expenses to future years and borrowing from internal funds.

Public schools will get roughly the same amount of money they got last year. They will not get a cost-of-living adjustment, so some districts will have to make cuts. But the budget prevents districts from laying off teachers and other support staff to balance their budgets. Districts will also get more than $5.3 billion in federal and state money to help schools reopen in the fall after closing because of the coronavirus.

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