Thu, May 15, 2025
[ Thu, May 15th ]: Fortune
Newsom says California faces $12bn deficit and wa .. eeze undocumented immigrant health program access
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Newsom says California faces $12bn deficit and wants to freeze undocumented immigrant health program access

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Beyond higher-than-expected Medicaid spending, Gavin Newsom blamed broad economic uncertainty, including federal tariff policies and a volatile stock market.
California Governor Gavin Newsom announced on May 10, 2023, that the state is facing a $31.5 billion budget deficit, a significant increase from the previously projected $22.5 billion shortfall. This deficit is attributed to lower-than-expected tax revenues and increased spending on Medicaid, which has seen a surge in enrollment due to the ongoing effects of the COVID-19 pandemic. To address the shortfall, Newsom proposed a budget that includes $12.2 billion in spending cuts, primarily targeting one-time and delayed expenditures, while also dipping into the state's rainy day fund. Despite the cuts, the governor emphasized maintaining investments in key areas such as education, housing, and climate initiatives, and he remains optimistic about the state's economic recovery, citing California's strong job growth and low unemployment rate.

Read the Full Fortune Article at:
[ https://fortune.com/article/gavin-newsom-california-12-billion-deficit-medicaid-spending/ ]