Newsom Declares Budget Emergency, Allows Access to Rainy Day Fund
On Thursday, Governor Gavin Newsom issued a proclamation declaring a statewide budget emergency, making available additional resources to fund the state’s ongoing emergency response to the COVID-19 pandemic. According to the Governor’s Office, the move will further ensure the availability of funding for personal protective equipment (PPE), medical equipment and other related expenditures necessary to support a potential hospital surge, and ensure the delivery of services to vulnerable Californians.
Notably, the proclamation allows the Legislature to pass a measure allowing the state to draw down reserves from the state’s rainy day fund to meet the unprecedented economic crisis and the state’s $54.3 billion budget deficit ushered in by the COVID-19 pandemic.
The Governor’s proclamation is available here.