Gov. Gavin Newsom and Democratic lawmakers struck a deal Saturday to make $16 billion in cuts, declare a statewide fiscal emergency and pull money from the state’s rainy-day reserves to balance a $46.8-billion budget deficit.
The agreement for a $297.7-billion spending plan is the result of weeks of contentious negotiations with labor unions and business interests after weaker-than-anticipated revenue forced Newsom and lawmakers to scale back California’s progressive policy agenda. The shortfall inspired a tug-of-war over coveted state dollars that has caused rifts between the governor and some of his closest allies at the Capitol.
Read more at the Los Angeles Times.