Newsom’s Latest Budget Proposal Falls $7 Billion Short, LAO Says

California Gov. Gavin Newsom’s May budget proposal still falls $7 billion short of a balanced budget for fiscal year 2024-2025, according to the state-funded, non-partisan Legislative Analyst’s Office. This new budget, called the May Revision, is a marked improvement from earlier assessments from the LAO that said the 2024-2025 deficit could be as high as $73 billion. Newsom’s May Revision proposes $15.2 billion in cuts, $4.2 billion use of reserves, $14.8 billion in program expansion pauses and shifts, and $7.5 billion from borrowing and non-tax revenues to produce what his office says is a $3.4 billion surplus for the 2024-2025 fiscal year.