What is truly unexpected is that Gov. Gavin Newsom's administration has just ordered a state spending freeze.
In a memo sent across California agencies and departments this week, the director of the Department of Finance wrote, "It is vitally important that state government is efficient, effective, and only expends funds that are necessary to the critical operation and security of the state. As such, all state entities must take immediate action to reduce expenditures and identify all operational savings achieved."
H.D. Palmer, a spokesman for the Department of Finance, said the last time the administration made this kind of directive was at the beginning of the pandemic in the spring of 2020 when state revenues plunged.
Palmer said the message to state agencies is simple: "We know you have an authorized budget, but if you haven't spent the money on things you don't need right away, don't do it."
California, the nation's most populous state with the fifth-largest economy in the world, is now facing the biggest budget deficit in state history.
Starting next month, California will begin its budget process when Newsom releases his proposed 2024-25 budget, followed by a revision in May. California's legislature and Newsom will need to take into account the state's multibillion-dollar budget deficit before the former approves the budget for the fiscal year that starts July 1.
Gavin Newsom's ordered a California state spending freeze as he braces for a HUGE impending budget issue.
No comments:
Post a Comment