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Governor Newsom Signs Budget Bill to Slash Shortfall

SACRAMENTO – Governor Gavin Newsom today signed legislation that reflects the early action budget agreement announced by the Governor and legislative leaders earlier this month to reduce the shortfall by approximately $17.3 billion.

“This action strongly positions the state to pass a balanced budget in June that protects key programs Californians rely on,” said Governor Newsom. “I thank our leaders in the Legislature for their commitment to finding common ground as we continue working towards responsibly meeting this challenge in the months ahead.”

Under AB 106, the Department of Finance will report to the Joint Legislative Budget Committee the list of items pursuant to the early action agreement that will no longer be included in the baseline budget forecast.

AB 106 is part of the early action agreement that contains a mix of $3.6 billion in reductions (primarily to one-time funding), $5.2 billion in revenue and borrowing, $5.2 billion in delays and deferrals, and $3.4 billion in shifts of costs from the general fund to other state funds.

For full text of the bill, visit: http://leginfo.legislature.ca.gov.

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