Gavin Newsom, lawmakers agree to early budget action — but they don’t have a clear plan

California Gov. Gavin Newsom and legislative leaders announced Wednesday they had reached an agreement to take early budget action to help curb the state’s projected deficit — but the actual outlines of proposed fixes remain unclear.

The governor, Assembly Speaker Robert Rivas, D-Hollister, and Senate President Pro Tem Mike McGuire, D-Healdsburg, said in a news release they are planning on $12 billion to $18 billion in budget “solutions” to address the shortfall.

Newsom spokesman Alex Stack said the leaders agreed they need to “address the budget deficit through early action.” But there is not currently a deal to make that happen.

The news comes after Newsom visited the Capitol throughout the week to meet with Rivas and McGuire, which he told reporters was related to early budget action.

“Despite the uncertainty due to the federal tax deadline delay last year, historic reserves and fiscal responsibility will assure a balanced budget that meets California’s needs,” Newsom said in a statement.

The announcement was light on details about what fixes are being implemented to address a deficit, which the nonpartisan Legislative Analyst’s Office has warned could be as high as $73 billion.

However, Senate Democrats last week unveiled a plan that they say would shave $17 billion off the deficit and calls for Newsom to spend more than $12 billion in Rainy Day Fund reserves.

“The deficit is serious and it’s grown by billions since January, which is why we must move with speed to shrink the shortfall immediately. The quicker we make tough decisions, the better prepared we’ll be to continue our work on a comprehensive budget to protect our progress,” McGuire said in a statement Wednesday. “It’s been an all-hands-on-deck approach.”

In the same statement, Rivas said that he hoped the initial budget package would be completed by early April. But, he added, “the Assembly’s budget work continues, including more than two dozen budget and oversight hearings scheduled next month. There are tough choices on the horizon, which is why our process is so critical.”

The budget announcement was greeted with criticism by Senate Republicans.

Sen. Roger Niello, R-Fair Oaks, who vice-chairs the Senate Budget and Fiscal Review Committee, blasted Newsom and legislative leaders for their “unilateral decision-making happening behind closed doors.”

“The fact remains that the state is facing a major deficit that has continued to grow, and this process should be open, transparent, and deliberative,” he said.