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California governor builds big budget plan on one-time cash

Gov. Newsom's $268 billion budget proposal would pay for education, health insurance and other big-ticket services for many state residents.

Posted: May 14, 2021 7:04 PM

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom's booming $268 billion budget proposal would pay for education, health insurance and other big-ticket services for many state residents.

But nearly all of the $100 billion in extra money is a one-time surplus, meaning it won't be available next year.

In addition, Newsom and the Legislature have already approved a massive tax cut for small businesses that will further reduce revenues by more than $6 billion over the next five years.

For many Democrats, the budget is a progressive dream. But Republicans say Newsom's plan just shows California's taxes are too high and makes grand promises to people the government won't be able to keep.

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We'll be sunny with slightly above average temperatures again on Wednesday afternoon. The threat of thunderstorms will keep our fire danger high today, with more widespread thunderstorms Thursday. Dangerous heat returns this weekend and will persist through at least the start of next week.
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