Gruesome Newsom Orders Commiefornia Spending Freeze
Legal Insurrection readers may recall that I reported on California’s staggering $68 billion deficit, caused by an “unexpected” economic downturn.
What is truly unexpected is that Gov. Gavin Newsom’s administration has just ordered a state spending freeze.
In a memo sent across California agencies and departments this week, the director of the Department of Finance wrote, “It is vitally important that state government is efficient, effective, and only expends funds that are necessary to the critical operation and security of the state. As such, all state entities must take immediate action to reduce expenditures and identify all operational savings achieved.”
The department urged state agencies to take several steps to save money, including avoiding any new contracts or agreements to lease or purchase equipment and cancel all plans for non-essential travel to seminars, conferences or training. It also urged departments to halt the purchase of new technology, non-essential state vehicle replacements and to reevaluate expensive IT projects.
H.D. Palmer, a spokesman for the Department of Finance, said the last time the administration made this kind of directive was at the beginning of the pandemic in the spring of 2020 when state revenues plunged.
Palmer said the message to state agencies is simple: “We know you have an authorized budget, but if you haven’t spent the money on things you don’t need right away, don’t do it.”
The shortfall is likely to impact the 2024/25 budget, too.
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