THE ECONOMIC AND HUMAN DAMAGE CAUSED BY THE SHUTDOWN IS ENORMOUS. THE STATE IS ESTIMATING A $54 BILLION DOLLAR DEFICIT NEXT YEAR. THEY’RE PROJECTING UNEMPLOYMENT TO REACH 18%.
IN JANUARY, THE GOVERNOR’S OFFICE PREDICTED A $5.6 BILLION DOLLAR SURPLUS. THE GOVERNOR ASKING FOR MORE MONEY FROM THE FEDERAL GOVERNMENT.
WITHOUT A BAIL OUT FROM THE FEDS, THE STATE IS LOOKING AT SUBSTANTIAL CUTS IN SPENDING IN THE 20-21 FISCAL YEAR BUDGET. EARLIER THIS YEAR, UNEMPLOYMENT IN THE STATE WAS 3.9%. IT’S EXPECTED TO RISE TO 18%. LOW-WAGE JOBS ARE GETTING HARDEST HIT. PERSONAL INCOME WILL DROP BY 9%. HOUSING CONSTRUCTION PERMITS WILL DROP BY MORE THAN 20%. THE CUTS TO LOCAL SCHOOL DISTRICTS AND PUBLIC EDUCATION ARE CATASTROPHIC AT ALL LEVELS. NEWSOM SAYS SCHOOL FUNDING WILL BE CUT BY $18 BILLION DOLLARS.
CALIFORNIA LEGISLATORS HAVE UNTIL JUNE 15TH TO PASS A STATE BUDGET FOR THE NEXT FISCAL YEAR.
