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California governor, lawmakers agree to budget deal that would help close deficit

Newsom and the leaders of the Senate and Assembly say the agreement protects core services including education, health care and the social safety net.

SACRAMENTO COUNTY, Calif. — California Gov. Gavin Newsom and the Democratic-controlled state Legislature have agreed on a budget deal that would to cover the state's estimated $54.3 billion deficit. 

Newsom and legislative leaders announced the agreement Monday. Sources with knowledge of the plan said it avoids permanent cuts to public schools and health care programs. But it also imposes $2.8 billion in salary cuts to state workers. In a joint statement, Newsom and the leaders of the Senate and Assembly say the agreement protects core services including education, health care and the social safety net.

California's revenue has tanked during the coronavirus pandemic because of a statewide stay-at-home order. In a press release, Newsom said the pandemic cause "a sudden and dramatic change in our nation’s and state’s economic outlook."

"California was better positioned for this sudden change than at almost any time in its history, building out record reserves following years of responsible budgeting," Newsom said in the release. "Even still, the size and scope of the pandemic and the accompanying economic crisis have been unprecedented – leaving California to make hard choices and figure out how to sustain critical services with much less."

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