California lawmakers break from Newsom's budget, extend deadline for federal cash

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The Senate plan assumes additional money for schools and social services will come from the federal government by early September.

California Senate Democrats are poised to reject $14 billion in budget cuts proposed by Gov. Gavin Newsom earlier this month, choosing instead to craft a spending plan that looks for other ways to erase the state’s deficit and assumes additional money for schools and social services will come from the federal government by early September.

The Senate plan lays out $13 billion in budget solutions if assistance from Washington doesn’t materialize. That includes additional use of cash reserves, internal borrowing and a more limited list of cuts. The plan also opts to delay, not cut, some $5.3 billion in school spending should the state not receive the assistance and would scale back Newsom’s proposed cuts to the University of California and California State University systems.

. That shifts the cost of those paychecks into a new fiscal year, thus being counted as a short-term spending cut.

 

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