(The Center Square) – In the aftermath of a government report projecting a $68 billion deficit for the 2024-2025 fiscal year, the California Department of Finance ordered a spending freeze across all state agencies for the remainder of the ongoing 2023-2024 fiscal year.
“The State of California anticipates significant General Fund budget deficits in fiscal years 2023-24 and 2024-25,” wrote California Department of Finance director Joe Stephenshaw in a statewide memo. “Accordingly, this [budget letter] directs all entities under the Governor’s direct executive authority to take immediate action to reduce current-year General Fund expenditures.”
While there are exemptions for declared emergencies, avoiding significant revenue loss, and achieving significant net cost savings, state agencies are directed to not enter any new contracts for goods and services, buy new IT equipment or vehicles, or travel outside of “time-sensitive or critical need.”
Agency secretaries and cabinet-level directors will also be required to report on all approved exemptions as well as achieved cost-savings on a monthly basis.
Assemblymember Vince Fong, R–Bakersfield, who serves as vice chair of Assembly’s budget committee, noted that the state is unable to continue on its current fiscal path any longer.
“I have said for years, a slowing California economy coupled with unsustainable spending is a recipe for fiscal disaster,” Fong said in a public statement. “No more gimmicks; we must take action now to get our fiscal house in order.”
California’s approved budget for the 2023-2024 fiscal year was $310.8 billion. The state last adopted a spending freeze at the beginning of the COVID-19 pandemic in early 2020 when state revenues rapidly declined.
Newsom just dreams of the day he can acquire a federal executive position where he has the capability to print his way out of the debt and the social bankruptcy policies created whenever Democrats take over the reigns of power. A $68 billion deficit out of a $310 billion budget comes to about 22 percent, which is double the 10% laundered money Joe Biden was able to put into his pockets. Just get the government out of our lives that does for individuals things they should be doing for themselves, and see how the cost of governance quickly disappears when the money can no longer go through the hands of corrupt men for the skimming.
AND You just know, if nasty Nancy was still in the speakership, SHE’d LET HIM DO THAT…
I wonder if this will affect the $1.2 million per eligible slavery reparation. No mention in the article. This is what happens when you “run” a deficient gubment with an even more deficient, foolish, feeble person like Grewsome (sp?). Plus leave in droves to states where they are better treated.
So I guess DeSantis won that debate after all, eh?