California governor would slash 10,000 vacant state jobs to help close $27.6 billion deficit

SACRAMENTO, Calif. (AP) — California has a budget deficit of $27.6 billion, Gov. Gavin Newsom announced Friday — a gap so wide that he’s proposing eliminating 10,000 vacant state jobs and cutting spending across 260 state programs.

The Democratic governor outlined the deficit Friday as part of his proposed $288 billion state budget for the fiscal year that starts July 1. That’s by far the largest budget of any state.

One-time cuts would include $2 billion for broadband that would have expanded broadband connections, $272 million for employment services for the state’s welfare program, and $500 million for water storage in the drought-plagued state. He said those water storage cuts would not directly impact the controversial tunnel project in the Sacramento-San Joaquin Delta that he has long supported.

Continuing cuts would save another $81 million by closing housing units with 4,600 beds across 13 state prisons, and remove $300 million in pandemic-related help for state and local public health departments. Ongoing spending for a scholarship program for middle class college students pursuing a teaching credential would be cut by $510 million. He also wants to suspend the widely used net operating loss tax deduction for businesses.