One exception: Newsom called for a reduction of $413.3 million for the Department of Water Resources and the Wildlife Conservation Board for watershed climate resilience. The Senate Dems proposed halving that cut, for a total of $206.7 million.

Senate Democrats want $17 billion in spending solutions

While the early action plan doesn’t erase the entire deficit, it would shave more than $17 billion off of it.

The proposal identified the easier changes to make, while saving the more challenging fiscal decisions for later this spring when lawmakers have a more complete budget picture.

The proposal calls fro $1.2 billion in cuts for the 2023-24 fiscal year, and another $2.1 billion in cuts for 2024-25, for a total of $3.3 billion in spending reductions.

It also calls for $4.7 billion in borrowing for those two fiscal years, $3.9 billion in fund shifts, $3.2 billion in delayed funding and $2.1 billion in deferrals, for a total of $17.1 billion in savings.

The biggest reductions are in public safety, transportation and labor

The Senate Democratic Caucus early action proposal breaks down the savings by the five budget subcommittees.

The greatest spending reductions will be made by the subcommittee that deals with public safety, transportation and labor. That subcommittee will oversee a spending reduction of more $5.8 billion, including $1 billion in cuts.

Among the cuts being proposed are $762 million in reductions associated with vacant job positions in various departments.

The remaining subcommittees handle education, resources and energy, health and human services, and general government.

The education subcommittee will see $1.8 billion in spending reductions, while the resources and energy subcommittee will see $3.7 billion in cuts. The health and human services subcommittee will see $4.8 billion and the general government subcommittee will see $720 million.

Senate Democrats want to use the Rainy Day Fund

While the Senate Democrats’ plan addresses part of the shortfall, Newsom’s plan to draw down about nearly half of the state’s reserves would make up another part of the deficit.

If the “Shrink the Shortfall” solutions are adopted, and Newsom uses about $12.2 billion from the state Rainy Day Fund, Senate Democrats estimate the remaining deficit to be anywhere from $8.6 billion to $23.6 billion.

“This is a reasonable proposal, as it leaves roughly $13 billion remaining in the fund to assist the budget in 2025-26 or later. This proposal ensures that the Rainy Day Fund will last through at least three years of this downturn – from 2023-24 through at least 2025-26 – which is a much more responsible approach then depleting the fund in one budget cycle,” according to the budget proposal.

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