Faced With $54B Coronavirus Deficit, California Gov. Proposes 10% Pay Cut For State Workers—Including Himself


California Gov. Gavin Newsom on Thursday proposed steep cuts to the state’s price range, together with a 10% pay minimize for all state staff, reflecting challenges California and different state governments are going through as they cope with depleted state budgets and unsure federal help.


Newsom proposed canceling $6.1 billion in program expansions and beforehand accredited spending will increase, together with canceling a plan to present healthcare advantages to undocumented immigrants over 65.

The price range proposal consists of an throughout the board 10% pay minimize for all state workers—together with Newsom and his employees—which might save $2.eight billion general.

Additional cuts embody $30 million for state parks beginning in 2021, $700 million in promised state funding for homelessness companies and a 10% minimize to each the University of California and California State University methods.

To cut back the severity of proposed cuts, the proposal makes use of 50% of the cash from the state’s wet day fund, and it is dependent upon future federal help that hasn’t but been accredited by Congress and caps tax credit for some people and companies.

Crucial quote

 “COVID-19 has caused California and economies across the country to confront a steep and unprecedented economic crisis—facing massive job losses and revenue shortfalls,” Newsom stated in an announcement. “We are proposing a budget to fund our most essential priorities – public health, public safety and public education—and to support workers and small businesses as we restart our economy. But difficult decisions lie ahead.”

Chief critics

Union leaders stated they’d attempt to negotiate a greater deal for his or her public worker members.

“We’re going to be looking for you for ideas for cost savings that we can then put forward and try to whittle this down,” Yvonne Walker, president of SEIU Local 1000, stated in a Facebook video to union members Wednesday night, in keeping with the San Francisco Chronicle.

Lorena Gonzoles, an Assemblywoman representing the San Diego space, stated, “making cuts across the board to public sector worker pay should be our last resort.”

“Our lowest wage civil servants were barely making ends meet before this and can’t bear a reduction in salary. We can’t exacerbate our shameful levels of income inequality during these times,” she continued.

News peg

Other states are going through related price range points to California, and have been pressured to put off staff or freeze hiring in a stopgap effort to chop spending. Democrats in Congress have proposed further federal help to states to assist steadiness their budgets, however Republicans are cut up on the thought. Senate Majority Leader Mitch McConnell has argued that Congress shouldn’t “bail out state pensions” and advised states ought to as an alternative take into consideration submitting for chapter. Others, resembling Senator Bill Cassidy (R-La.), whose state is going through a $1 billion shortfall, is proposing direct federal help to state and native governments.

What’s subsequent

The state legislature has to approve or make adjustments to Newsom’s proposed price range by June 15.

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Source link Forbes.com

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