Senate Announces Early Action Budget Plan To ‘Shrink The Shortfall’
SACRAMENTO – In an effort to immediately tackle California’s budget challenge early in the year, Senate Leader Mike McGuire (D-North Coast) and Senate Budget & Fiscal Review Committee Chair Scott Wiener (D-San Francisco) today announced a plan by Senate Democrats to Shrink the Shortfall through decisive early action on the budget.
Recent reports indicate the projected budget shortfall has grown by an additional $15 billion, resulting in a potential shortfall range from $38 billion to $53 billion.
The Senate’s early action plan would reduce the shortfall by over $17 billion.
This immediate action takes the shortfall range down to a more manageable $9 billion to $24 billion and enables final budget negotiations later in the year to focus on closing the remaining gap while working to protect the progress to core programs that California has made in recent years.
With a balanced mix of $17 billion of program reductions and other solutions, along with adopting the Governor’s responsible proposed use of the Rainy Day Fund, the Senate’s Shrink the Shortfall early action plan is step one of this year’s budget process, which will ultimately lead to a balanced, on-time responsible budget for 2024-25.
The Shrink the Shortfall early action plan will be heard in the Senate Budget and Fiscal Review Committee and could come up for a vote on the Senate Floor as soon as there is agreement with the Assembly and Governor.
Senate President pro Tem Mike McGuire:
“When times are tight at home, people buckle down and do what needs to be done. That’s what the Golden State has to do right now too. The quicker we move, the quicker we’ll be able to reduce the deficit, and we know we have to move decisively because the budget shortfall is real and serious. The Senate’s plan to shrink the shortfall protects core programs, includes no new tax increases for Californians, makes necessary reductions, and takes a prudent approach to utilizing the Rainy Day Fund so we can be prepared for any future tough times. We look forward to buckling down with Governor Newsom, Speaker Rivas, and our Assembly partners on these responsible early actions, and on an overall state budget that protects our progress for all Californians.”
Senate Budget & Fiscal Review Committee Chair Scott Wiener:
“After years of strong progress to advance California values, we face a huge budget challenge. I’m honored to be working hand in glove with Pro Tem McGuire and our Senate colleagues to advance smart solutions that address the deficit while protecting our progress. Time is truly of the essence. The early actions we’re proposing, including $17 billion in General Fund solutions, not only reduce the size of the deficit in this budget year and the next, but also give us more time to develop thoughtful solutions to address the shortfall that will remain. Let’s be clear: Shrinking the shortfall early in the process is step one. The Senate’s 2024-25 budget plan will be released later in the spring and will provide a comprehensive proposal for a balanced, responsible budget that protects core programs and services and positions the Governor and the Legislature to best protect California’s progress.”
Click here to read more about the Senate’s Shrink the Shortfall Plan.
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Mike McGuire is President pro Tempore of the California Senate. He represents the North Coast of California, which stretches from the Golden Gate Bridge to the Oregon border, including Del Norte, Trinity, Humboldt, Lake, Mendocino, Sonoma, and Marin counties. Website of Senate Leader McGuire: https://sd02.senate.ca.gov/