Governor Gavin Newsom signed California’s 2024 budget on Saturday, which cut spending in an effort to close the state’s $47 billion deficit.
About $16 billion in spending cuts were made in the 2024 plan with a goal of making the upcoming budget “more fiscally responsible,” according to the agreement’s fact sheet.
“This is a responsible budget that prepares for the future while investing in foundational programs that benefit millions of Californians every day,” Newsom said. “Thanks to careful stewardship of the budget over the past few years, we’re able to meet this moment while protecting our progress on housing, homelessness, education, health care and other priorities that matter deeply to Californians. I thank the Legislature for their partnership in delivering this sound and balanced plan.”
According to the Governor’s office, the agreement avoids deep program cuts while maintaining the budget for education and Medi-Cal expansion.
The $298 billion spending agreement was passed by the State Legislature on Wednesday in a series of bills, that Newsom signed on Saturday. The spending includes several items on the agenda of state Democrats, like support services for the unhoused and for immigrants lacking permanent legal status.
Part of the budget includes taking from the state’s reserve “rainy day fund” over the next two fiscal years, including $5.1 billion in 2024-25 and $7.1 billion in 2025-26.