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Newsom Announces Cuts To Climate Change Funding Over $25B Deficit

by Joel B. Pollak
January 12, 2023, 9:01 AM
in News and Opinion
Reading Time: 3 mins read
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newsom solar maniaCalifornia Gov. Gavin Newsom (D) announced Tuesday, in the midst of heavy rain and flooding that he would propose cutting funds to some of the state’s ambitious climate change programs due to a sudden budget deficit.

As Breitbart News reported in November, California discovered that it would face a budget deficit of roughly $25 billion — a year after a record surplus of $98 billion that was partly fueled by infusions of federal COVID relief. [emphasis, links added]

The reason for the deficit: lavish spending on entitlements and Democratic Party pet projects, plus the innate volatility of California’s revenue model, which depends on taxing the highest earners, who had a rough year.

In a live press conference on his budget proposal, which he did not delay even though the state was suffering from deadly floods and “atmospheric rivers,” Newsom announced the grim news.

The Los Angeles Times reported:

Facing a projected $22.5-billion budget deficit in the upcoming fiscal year, Gov. Gavin Newsom on Tuesday announced plans to reduce investments in the state’s move to zero-emission vehicles and delay funding for 20,000 new child-care slots as California transitions from a time of economic surplus to shortage.

The governor’s administration blamed high inflation, the Federal Reserve raising interest rates and volatility in the stock market as the major forces causing state revenues to drop well below projections from last summer when he anticipated a$100-billion surplus in the current budget year.

His $297-billion budget plan for 2023-24 relies on delaying multiyear investments and shifting funding to bonds to offset the shortfall. Newsom said he was careful to preserve the state’s rainy day fund and budgetary reserves given the warnings about a nationwide recession and possibility that California’s financial problems could become more dire in the months and years ahead.

The Associated Press noted Newsom is still increasing funding in some areas, such as homelessness:

Even with revenue shrinking, Newsom is allocating more money to addressing homelessness. His proposal includes $3.4 billion for homelessness, with $400 million to clean up tent encampments and $1 billion for cities and counties to reduce the number of people living outdoors.

…

California has already set its sights on achieving carbon neutrality by 2045, meaning the state will remove as many carbon emissions from the atmosphere as it emits.

But Newsom has proposed reducing what the state plans to spend on climate over a five-year period by $6 billion. That would include $4.6 billion in cuts for the upcoming fiscal year, said Sergio Aguilar, assistant program budget manager at the California Department of Finance.

The cuts could hurt California’s effort to end sales of gas-powered cars by 2035 and diesel and gas trucks by 2040.

Already, environmentalists, who link the unusually rainy weather to climate change, are expressing alarm at Newsom’s proposed cuts, which they see as a betrayal of one of his core policies.

Read rest at Breitbart

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Comments 3

  1. Sonnyhill says:
    2 years ago

    Dear Governor Newsom, water, O2 and CO2 are necessities of life. When was the latest California water resevoir approved and built? You’re not doing anything right and everything wrong. Your negligence creates crises. Admit it.

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      • Weather Versus Climate
      • Why I’m a GW skeptic
      • Winning the climate debate with facts
      • Why Aliens Cause Global Warming
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