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Analyst criticizes Newsom's spending plan as 'shortsighted'

The independent Legislative Analyst's Office criticized the proposal, calling it shortsighted and inadvisable.
Credit: AP
FILE - In this Jan. 8, 2021, file photo, California Gov. Gavin Newsom speaks about his 2021-2022 state budget proposal during a news conference in Sacramento, Calif. California Gov. Gavin Newsom is preparing to deliver his final budget proposal to the state Legislature. Newsom revealed his initial budget proposal in January. On Friday, May 14 he will update that proposal based on more than $100 billion in new money. (AP Photo/Rich Pedroncelli, Pool, File)

SACRAMENTO, Calif. — Gov. Gavin Newsom wants to take more than $12 billion from the state's savings accounts and other sources to increase spending this year. That's despite the state having about $100 billion in new money to spend. 

The independent Legislative Analyst's Office criticized the proposal, calling it shortsighted and inadvisable. They say the state needs to hold onto that money for a future budget crisis. Department of Finance spokesman H.D. Palmer said the governor's proposal strikes a proper balance. 

Assembly Budget Committee Chair Phil Ting said he hasn't finished reviewing Newsom's proposal. But in general, he said it aligns with the Legislature's thinking.

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