Connect with us

Top News

Coronavirus triggers California’s worst budget deficit



Coronavirus triggers California's worst budget deficit

The California government faces a $ 54.3 billion budget deficit until next summer, according to an analysis released Thursday by Governor Gavin Newsom’s advisers, marking the largest projected fiscal hole in the country’s history and increasing the likelihood of cutting deep spending or substantial new tax revenues to produce the difference.

This estimate explains the rapid erosion of tax revenues and the increasing need for health programs and human services. While measuring the gap between income and expenditure based on projections made by Newsom in January rather than existing funds, the valuation still reflects the country’s record-breaking economic collapse, created in just a few weeks by the fast-moving COVID. Pandemic.

“This is a global pandemic,” Newsom said. “And no economy in the whole world has been substantially, at least, immune.”

The Newsom budget team estimates a decline in tax revenues of $ 41.2 billion compared to their estimates only from four months ago. Most of that – $ 32.2 billion – will occur in the fiscal year that starts in July. This year’s tax revenue, according to the report, is expected to miss $ 9.7 billion, even though most of the state’s budget year has passed when the virus becomes an immediate concern in March.

In total, the projected deficit represents 37% of general funding disbursements approved by lawmakers last year. This shortfall is equivalent to three years of state funding for the University of California and Cal State University systems combined.

“When you look at the numbers, they should get your attention,” Newsom said Wednesday as the midday event provided an update on the coronavirus crisis.
When tax revenues plummet, government spending is projected to skyrocket. The fiscal report released Thursday assumes about $ 13 billion in higher state costs due to the pandemic, with a combined $ 7 billion in higher than expected caseloads for programs such as Medi-Cal, which provides free health care, and CalWorks , state welfare assistance program. A total of $ 6 billion in expenditure was assumed as a result of COVID-19 countries’ responses.

See also  'SNL' alumni Jay Pharoah said LA police approached him at gunpoint and kneeled around his neck

Democratic legislative leaders tend to ask for more to help citizens who are most in need. Assemblyman Phil Ting (D-San Francisco), chairman of the Assembly’s Budget Committee, said he would support the extension of state-funded unemployment benefits that could last until 2021. The aim, he said, was to keep the Californians from having to depend on various programs other social services.

“Although we will have a short-term budget, it will have far greater budget benefits,” Ting said.

The decision to release initial horrific estimates – Newsom will not present the revised state spending plan to the Legislature for another week – is likely to be driven by a desire to calibrate the hopes of lawmakers and interest groups about what lies ahead.

“This will be some difficult decisions. But we will work smarter and more strategically and recognize the fundamental role of government at a time like this, “said state Senator Holly Mitchell (D-Los Angeles), chairman of the Senate Budget Committee.

Responses by government officials must come quickly. The Legislature will have less than a month to consider and propose changes to the Newsom budget before the constitutional deadline of June 15 to finalize a plan. But for most of the year, the blueprint could require major revisions. Revenue collection will take longer than usual, because millions of California taxpayers take advantage of a 90-day delay in filing income tax returns and paying what is owed.

Therefore, additional budgetary measures may be needed at the end of the summer before the Legislature delays right before Labor Day.

“I think this budget can be a place for conversation that they will discuss later this summer,” said Chris Hoene, executive director of the California Budget and Policy Center, a nonprofit organization that advocates programs to help low-income residents.

The impact on K-12 education funds can be very severe. Schools receive about 40% of the country’s general funding income and, under a complex set of constitutional formulas, can see their minimum funding cuts of more than $ 18 billion based on Newsom’s administrative analysis.

“This is a very scary number,” said Kevin Gordon, a veteran education lobbyist. “The allowable deduction will issue a school budget,” Gordon said.

And that reduction could occur because state officials are asking schools to do more to help children, especially those from low-income families, when it comes to distance learning and providing food.

In January, with the economy still developing, Newsom proposed a $ 222.2 billion budget plan that projects upticks in spending on K-12 schools and health care programs. But the plan, introduced less than eight weeks before the governor declared a state of emergency to combat the corona virus, assumed a steady growth in personal income of 4% a year and continued low unemployment.

See also  Beth Behrs of '2 Broke Girls' is registered in Hollywood Hills

Those hopes have vanished. The state has processed more than 4.2 million jobless claims since mid-March, almost equivalent to all jobs in Los Angeles County. The Newsom administration estimates that nearly 478,000 jobless claims have been filed in just the past week. The state received approval this week for a $ 8 billion loan from the federal government to cover the increase in benefit costs.

The role of the federal government in sustaining California’s finances and dozens of other states looks great. House Speaker Nancy Pelosi (D-San Francisco) and other congressional Democrats have suggested subsidies to state and local governments of as much as $ 1 trillion. Meanwhile, many of California’s direct coronavirus costs can be reimbursed by the Federal Emergency Management Agency.

On Thursday, Newsom said additional assistance to local and state governments was essential to provide the funds needed for emergency workers which became increasingly vital as the pandemic continued.

“We must recognize that this moment requires a historic partnership effort, not only between the governor and the legislature, but between the state and our federal government,” he said on Thursday.

The projected $ 54.3 billion deficit is the largest estimate since the $ 40 billion deficit was predicted by the government at that time. Arnold Schwarzenegger during the Great Recession in January 2009. In 2011, at that time -Government. Jerry Brown said the country looked at the 27 billion dollar fiscal hole. Newsom’s analysis noted that the projected deficit in the past was not only smaller in total dollars, but also a smaller percentage of public funds than what MPs faced this year.

Sharp increases in employment and tax revenues erased red ink in the past, with some money set aside in cash reserves. California voters increased the maximum deposit amount in the state’s “rainy day” fund in 2014.

The efforts of state lawmakers, led by Newsom and Brown, to put cash into the reserve fund can help soften the blow. The Office of the Independent Legislative Analyst estimated last month that total state cash reserves were around $ 17.5 billion – money that could provide protection, but only under a string of stringent conditions.

However, the state has other resources that can be used – including billions of dollars in special funds and other accounts that can be accessed temporarily – that California leaders did not have in the previous recession.

“They are not in a good position, because of previous fiscal management, to overcome the deficit,” Newsom said in comparing the past fiscal crisis with this one. “And I think this is a long way to say this, we will get through this.”

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Top News

A BOLA – Bruno Gama (Aris Thessaloniki) scored a goal on smiling Sunday for the Portuguese (Greece).



A BOLA - Bruno Gama (Aris Thessaloniki) scored a goal on smiling Sunday for the Portuguese (Greece).

Portuguese striker Bruno Gama (incumbent) scored the only goal in the 41st minute win over Aris Thessaloniki, who earned three points against Asteris Tripolis in the 12th round of the Greek Super League.

Former FC Porto player nicknamed Juan Iturbe mini messiRecall that having chosen the Paraguayan nationality, he left the bench and replaced the Argentinean Daniel Mancini in the 69th minute, and the hero of the match, the Portuguese, the hero of the match, left the field at the same moment, he was replaced by the Argentinean Mateo Garcia.

In the main match of the day against AEK Atenas, who took 2nd place and hosted the eternal rival Panathinaikos, Portuguese midfielder Andre Simoes started for the home team (was yellow in the 34th minute), who won 1-0 from Polish midfielder Damian Szymanski on second minute of the match.

The striker Dalsio, winner of the 10th jersey of Ionianikos, also participated in a 3-2 home win against PAOK Thessaloniki. Away Portuguese player Vieirinha was expelled, but some familiar faces of Portuguese football played a role, such as Serbian striker Andrija Zivkovic, ex-Benfica, Nigerian midfielder Anderson Esiti, ex-Estoril and Leixoins, as well as the central player from Cape Verde. captain, Fernando Varela, ex-Fairense and Trofense.

See also  The harsh words of hockey hater Max Kellerman triggered ESPN to clash with Linda Cohn
Continue Reading

Top News

The newspaper highlights the “tight rope” in the relationship between Jorge Jesus and Benfica



The newspaper highlights the "tight rope" in the relationship between Jorge Jesus and Benfica

Portuguese newspaper A Bola stressed that the relationship between Jorge Jesus and Benfica is not the best, as the coach is not achieving satisfactory results. Last Friday 03, the club lost 3-1 at home in the derby against Sporting.

“It is not only the connection between the club and the coach that will be evident after the events at Estádio da Luz. Even the continuation of Jesus’ life until the end of the season may be jeopardized, given the results, quality or lack of It follows that about the presented football and, above all, about the relationship with the fans who were seriously injured, ”wrote the car.

Also, according to the newspaper, JJ’s position is unstable, not least because the man who bet on him, Luis Filipe Vieira, is no longer at the club. In addition, the coach had to face a serious challenge from the public during the defeat in the derby.

However, if the team succeeds in the challenges ahead in December, then coach continuity through the end of the season can be guaranteed. The match between Benfica and Dynamo Kiev at the Estadio da Luz stadium, which will take place next Wednesday, August 8, will be an excellent indicator of the future of Jesus at the club.

It’s worth mentioning that JJ is one of the most coveted names in Flamengo, who will lead the team in 2022. In 2019, Jesus led the Brazilian team in the conquest of Brasileiran and Libertadores.

See also  Benfica beat Boavista to achieve sixth victory in the Portuguese championship | Portuguese football
Continue Reading

Top News

The lucky winner of the evening of the Foundation of the Mayors of Terry and Strauben received a holiday in Portugal



The lucky winner of the evening of the Foundation of the Mayors of Terry and Strauben received a holiday in Portugal

Michael Daly is the Everglades Star Award Winner. Received a voucher for Terry Airport to Al Korve this summer from Travel Solutions, Northern Ireland’s leading tour operator, which includes seven nights at Aratlandico Apartments in Albuquerque.

It was part of a rally held tonight with all proceeds from Mayor’s Charity – the Foyle Down Syndrome Foundation.

Councilor Graeme Varkey, Mayor of Terry and Straben County Council, congratulated Michael on his great trip and thanked Travel Solutions for their support.

please register For our daily Terry Journal Today newsletter

Newsletter cut off by noise

Sarah Simpson and Michael Daly, Travel Solutions Holiday winners for the Portuguese Mayor’s Christmas Fund on behalf of the Foyle Down Syndrome Foundation, welcome Alderman Graham Wark and Robert Wilson and Terry Airport CEO Steve Fraser of Travel Solutions.

“We had a wonderful Christmas Eve night in honor of the Mayor’s Foundation and it was the perfect decision to give Portugal this incredible star gift to our winner, Michael Daly.

“I would like to congratulate you and express my gratitude to Travel Solutions for their generosity and kindness in making this gift and in turn for their support of the Foyle Down Syndrome Foundation. We are raising a lot of money for this very useful business.

“I know that many have missed the opportunity to enjoy a good vacation over the past two years, so I thank Travel Solutions again for their support and hope that next summer Michael will enjoy his sunshine gold at Alcarve.”

Julie Magill, CEO of Travel Solutions, said: “We would like to thank the Mayor for giving us the opportunity to support the Fund’s fundraising efforts. We are proud to be part of this epic night.

Terry Airport Managing Director Steve Fraser added: “I am honored to be part of this inspiring event and to support the Foyle Down Syndrome Foundation at our local community center in the Northwest. We are delighted to partner with our partner Travel Solutions to deliver this wonderful vacation package, as well as our flight partner Loganier, who, as always, is very kind to provide the airlines with gifts in support of this well-deserved cause. Special thanks to the Mayor and the staff of the Terry City and Strauben District Council for their continued support throughout the year for organizing such a wonderful evening.

Other gifts for the evening include two return flights from Loganeer-sponsored Terry Airport to London Stansted, Liverpool or Glasgow; Ipod; Overnight at the Benedict Hotel in Belfast; Restaurant vouchers; And much more.

See also  Tesla was unable to open a California factory because of the coronavirus crisis
Continue Reading