Due to the government-mandated shelter in place to slow down the spread of COVID-19, the state budget went from a $6 billion surplus to an estimated $18 - $54 billion deficit. Governor Gavin Newsom today submitted his 2020-21 May Revision budget proposal to the Legislature. Senator Jim Nielsen (R-Tehama), Vice Chair of the Senate Budget Committee, issued the following statement:
“The only real solution to California’s budget challenge is to get Californians back to work – responsibly – in accordance with local public health guidelines.
“Relying on federal bailouts is not a budget solution. And tax increases would deepen this economic slowdown.
“It is only through the reopening of the economy that the state will climb out of this recession.
“Had it not been for the people of California who voted for Proposition 2 to create the Rainy Day Fund, the state would have been in a far worse situation.
“Small communities have been hit the hardest by this economic shutdown. Rural counties need to be assured that they receive equitable funding in the already passed CARES Act, federal money that the state has not distributed.”