"Newsom's Proposal: Tapping Reserves to Close California's $38B Deficit"
California Gov. Newsom proposes tapping into the Rainy Day Fund to address a nearly $38 billion deficit, aiming to protect investments in education, public safety, homelessness, mental health care, and climate action. The proposal includes pulling over $13 billion from reserves and offering free health insurance to approximately 700,000 illegal immigrant residents aged 26-49. The budget also involves $8.5 billion in spending cuts, with half spread across housing and climate programs, and a decrease in public school funding. Republican Assemblyman James Gallagher criticized the proposal as "pure fantasyland," arguing that it fails to address the state's overspending issue.
