GOP urges Newsom to declare fiscal emergency over $68bil budget deficit 

Assembly Republicans are calling on California Gov. Gavin Newsom to declare a fiscal emergency to address California’s budget crisis. 

The nonpartisan Legislative Analyst’s Office announced last month that the state is facing a $68 billion deficit. 

The big picture: According to the LAO, California is looking at a major deficit because tax payments have come in at much lower amounts than were projected. 

• Asm. Vince Fong (R–Bakersfield), who is the Assembly Budget Committee Vice Chair, and Assembly Republican Leader James Gallagher (R–Yuba City) sent a letter to Newsom on Monday calling for a fiscal emergency. 

What they’re saying: In their letter, Fong and Gallagher chided Newsom for not calling a special session of the Legislature last month immediately after the LAO’s announcement. 

• “You have chosen to do nothing but deflect instead of addressing the gravity of this problem,” the letter reads. 
• The duo wrote that Newsom and legislative Democrats have added $17.3 Billion in new ongoing costs over the last three budgets despite knowing that the future budget projections were uncertain. 
• “Unanticipated surpluses have receded and excessively high revenues are a thing of the past while spending has only increased,” the letter reads. “We unfortunately appear to be entering a new ‘normal’ for our revenue stream.” 
• They called on underlying General Fund spending to be reduced to align with the new revenue stream, adding that the Legislature needs enough time to evaluate one-time and limited-term spending. 
• “We continue to urge you to call for a special session, and now also declare a fiscal emergency to ensure that all possible solutions are employed to restore order to our fiscal state,” the letter reads. “While dipping into available reserves may be necessary to address revenue shortfalls, they should only be used judiciously to maintain core government programs. 
• “Preparing now will lessen the pain for Californians who depend on state services. Waiting will only cause more harm and uncertainty if money continues to unabatedly drain.”