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California to Slash Billions from State Budget as Coronavirus Hammers Tax Revenues

HeadlineMay 15, 2020

California Governor Gavin Newsom on Thursday outlined a revised budget plan that seeks to close a yawning $54 billion deficit by July 1. Newsom says a nosedive in tax revenue caused by the pandemic will force him to slash spending for education, health and human services, parks and public safety. Newsom is also asking unions representing state employees to agree to 10% pay cuts. He appealed to Congress to include aid to state and local governments as part of the next coronavirus relief bill.

Gov. Gavin Newsom: “The enormity of the task at hand cannot just be borne by a state. The federal government has a moral and ethical and economic obligation to help support the states.”

House members return to Washington today to vote on a $3 trillion coronavirus relief package named the HEROES Act. Progressive critics say the bill fails to provide paycheck guarantees to workers and health insurance to the unemployed. President Trump has called the House bill “dead on arrival.”

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