Newsom Called It A 'gimmick.' Using The Trick To Reduce California's Massive Deficit

After a windfall five years ago, Gov. Newsom declared he was eliminating a state budget "gimmick" his predecessor used to cut $800 million from a deficit during the Great Recession.

The 2009 accounting gimmick delayed state worker payroll from June 30 to July 1. Newsom spent roughly $1 billion to terminate the ruse a decade later, with one proviso.

Newsom convinced lawmakers to employ the budget trick next year even though California isn't in a recession.

Democrats are using numerous methods to postpone their spending problem to another year to minimize a massive $37.9 billion budget deficit.

On Thursday, lawmakers passed a budget trailer measure that slashes unspent financial allocations in 2022-23 and 2023-24 by $1.6 billion.

Newsom promoted the reforms as a "early action" pact to reduce the deficit in April, but many won't be enacted until June.

Newsom and lawmakers are borrowing $5.2 billion, delaying $5.2 billion in state-sponsored program financing, and dipping into $3.4 billion from different state coffers to reduce the deficit.

Critics say Newsom and Democrats overspent and caused the deficit. His detractors say the "gimmick.

General fund revenues, which fund most public services, were $140 billion when Newsom entered office in 2018-19. The governor's January budget projects revenues of approximately $214 billion.