California’s budget deficit—which has increased to $31.5 billion—might put Governor Gavin Newsom in a bind regarding his state’s plan to compensate Black residents for slavery and past discriminatory policies.
Newsom announced the budget deficit on Friday, saying that California is partially challenged by high federal inflation rates and the state’s decision to allow some residents to file their taxes later after winter storms, local news station KCRA reported.
The current deficit is part of a revised $306.5 billion budget proposal, and around $9 billion more than the $22.5 billion shortfall that he predicted in his initial budget proposal in January.
“We are walking into a budget where we need to maintain our prudence, and we need to prepare not just for the short term but the medium and long term,” Newsom said at the press conference. The revised fiscal plan includes $224.1 billion in general spending, $79.5 billion in special funds and $2.9 billion in bond funds.
The California governor proposed solutions in January to cover the deficit, including spending cuts that hit some of the climate programs and other policies in the state, according to KCRA. Newsom’s budget plan at the time aimed to cut funds for flood protection projects and delay an expansion of a subsidized child care program, among other suggestions.
Newsom’s announcement of California’s massive budget deficit comes after the Reparations Task Force in the state voted on Saturday to approve recommendations on compensating Black residents.
The nine-member committee, which first convened nearly two years ago, approved recommendations including payments that would compensate Black residents for decades of over-policing, unreasonable incarceration and housing discrimination. Cash compensations could total $800 billion.
A recent Fox News report said Newsom is against the cash payments among the recommendations, but a spokesperson for the governor’s office denied this. The spokesperson told Newsweek on Thursday that Newsom would make up his mind about the cash payments after the task force submits its final report.
“The governor looks forward to reviewing the final report—and all recommendations—when complete,” the spokesperson said.
The task force’s recommendations will be presented at its next meeting on June 29, then submitted to the state Legislature by July 1. The state legislature and Newsom will then decide whether any reparations will be paid and whether any of the recommendations would be enacted into law.
The bill to create the country’s first panel tasked to explore reparations for slavery was signed by Newsom in the aftermath of the death of George Floyd in 2020, who was killed by a police officer in Minneapolis, Minnesota.
Newsweek has reached out via email to Newsom’s office for comment.
