The following can be attributed to CBRT President Rob Lapsley:
“In 2021, Governor Newsom stood before Californians announcing a $75 billion budget surplus. Four years later, the state faces a $12 billion deficit. The governor attributes this downturn to the so-called “Trump Slump,” but the reality is that the state’s spending problem was created in California and must be solved in California.
“In his revised May budget proposal, the governor has simply shifted spending. Proposed cuts to the state’s General Fund are nearly equal to increased spending in the state’s special funds. This accounting maneuver does nothing to solve the underlying deficit.
“We support the governor in his initial efforts to renew market-based climate programs like cap-and-trade while the business community works with the Legislature on the details of the reauthorization. We also believe that it is critically important to fund the implementation of Proposition 36 in order to protect communities and businesses.
“Importantly, the governor has not proposed new taxes as Californians struggle with the highest cost of living in the country. It is critically important for the governor and the Legislature to pass policies that stimulate private sector investment and job creation to ensure the State of California can generate the revenues needed to fund all priority programs and ensure long-term economic stability.”