May Budget Revise Offers Narrow Opening for More Transit Funding to Ward Off Fiscal Cliff
Gov. Newsom today (May 12) unveiled his May budget revision and the overall picture has worsened since he first proposed his spending plan in January. With the state facing growing economic headwinds and other financial uncertainties, the revised budget forecasts a $32 billion deficit, almost $10 billion more than was estimated in the original spending plan. Newsom emphasized “resilience and restraint” as the guiding principles of his budget planning. That was certainly reflected in the fact that Newsom didn’t allocate any new funding for transit agencies across the state that are facing a fiscal cliff from reduced ridership and fare revenue.
However, Newsom also indicated that he is committed to working with the legislature on solutions, which we and other transit advocates take as a positive signal. The Bay Area Council is working hard to advocate for more state funding for transit and we have been working with both Gov. Newsom’s administration and legislative leaders to help shape solutions. Gov. Newsom also reiterated his skepticism about a proposal by Senate Democrats to raise corporate taxes, a move the Council vehemently opposes.
Read the Governor’s entire May revision plans and the Bay Area Council memo highlighting key proposals in the revision. The Council will have more analysis next week on the Governor’s May budget revision.