Newsom, lawmakers agree on budget deal to close deficit

California
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SACRAMENTO, Calif. — Gov. Gavin Newsom and the Democratic-controlled state Legislature have agreed on a budget deal that would cover the state’s estimated $54.3 billion deficit. 

Newsom and legislative leaders announced the agreement Monday.

Sources with knowledge of the plan said it avoids permanent cuts to public schools and health care programs. But it also imposes $2.8 billion in salary cuts to state workers.

In a joint statement, Newsom and the leaders of the Senate and Assembly say the agreement protects core services including education, health care and the social safety net. California’s revenue has tanked during the coronavirus pandemic because of a statewide stay-at-home order.

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