Connect with us

News

California’s Leaders Announce Plan to Tackle Historic $38 Billion Budget Deficit Amidst Democratic Disagreement

urlhttps3A2F2Fcalifornia times brightspot.s3.amazonaws.com2Fcb2F1d2Fd84cd3214e93bcf84f09811d7f2e2Fcalifornia budget 42394

With a budget deficit of at least $38 billion hanging over their heads, Gov. Gavin Newsom and Democratic leaders of the state Senate and Assembly announced an agreement on Wednesday to take action in April to begin to dramatically reduce California’s historic shortfall.

The problem: Democrats at the state Capitol couldn’t actually agree on an amount — offering only a range of $12 billion to $18 billion — or explain what, exactly, they plan to cut.

Those details, the governor’s office said, will be discussed and shared next month.

The head-scratching announcement of a plan to have a plan comes as pressure mounts on Democrats over the looming fiscal crisis.

Newsom has urged the Legislature to take “early action” to begin to whittle away at the deficit now — well before the June deadline to pass a budget — by clawing back unspent funding, delaying programs and reducing planned spending. The cuts currently under discussion are largely considered the easier choices, with the hope of freeing up Democrats to focus on tougher deliberations that will come later this spring when the full scope of the budget hole becomes clearer.

The Senate unveiled its own plan last week to slice off $17 billion from the deficit with early cuts, which include delaying and pulling back more than $1 billion to expand early education classrooms and support school facilities. But the Assembly, where Democrats hold 62 of 80 seats under a new speaker who has promised to give his members more input on big decisions, has been slower to rally behind a plan.

Check Out Also:  Eyewitnesses recount terrifying conditions and lack of basic necessities at hospital under siege in Gaza

The struggle to reach a real consensus on the early cuts speaks to the challenge ahead as Democrats embark on a process to correct what could be the largest fiscal deficit the state government has ever experienced. Some estimates suggest the shortfall could be nearly twice as much as Newsom’s estimates, which will force lawmakers to make difficult choices in May and June about programs that affect millions of Californians.

Democrats often pass an initial budget by the June 15 mandate required by state law and revise it again before the fiscal plan takes effect on July 15.

“In some ways, I think this forces an earlier reckoning of the reality of what they’re going to have to actually vote on,” said Rob Stutzman, a longtime GOP strategist who worked for Gov. Arnold Schwarzenegger. “And they’re going to wholly own it.”

Whereas Republicans shared the pain during the budget crisis in Schwarzenegger’s era, now Democrats control the governor’s office and both houses of the Legislature by wide margins.

Only a handful of lawmakers have experience in office during the prior budget crisis, and Newsom has never been forced to make cuts of this magnitude.

His call to shave the deficit early has been met with mixed responses from the Legislature, prompting Newsom to come to the Capitol this week for meetings with Democrats in the Senate and the Assembly leader in hopes of reaching an agreement before they leave Sacramento for spring break on Thursday. Lawmakers are expected to pass one of Newsom’s major budget proposals before the recess, a tax increase on managed-care organizations that allows the state to draw more federal funds for healthcare.

Check Out Also:  Five tips from experts on successfully potty training your child

In a statement included in the announcement of the agreement, California Senate President Pro Tem Mike McGuire (D-Healdsburg) said the Senate is ready to move quickly on tough budget decisions.

“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,” McGuire said.

The Senate’s plan to cut $17 billion, coupled with a desire to tap $12.2 billion from the rainy day fund, could leave lawmakers with $29 billion less to offset in June.

Newsom’s Department of Finance has said the governor’s administration backs the Senate’s package. But the Assembly has yet to detail how it wants to move forward.

The budget chair of the lower house, Assemblymember Jesse Gabriel (D-Encino), held a news briefing on Friday and said the Assembly appreciated the proposals from the governor and Senate, but also needed more time.

“We value process and we value time to consider all of these trade-offs,” Gabriel said.

Gabriel said the Assembly planned to put forth its proposal in April. He said he could foresee the Assembly taking some early action but he also saw advantages to waiting until June to have more certainty about the size of the shortfall.

In a statement released Wednesday with the vague announcement of a forthcoming agreement, Assembly Speaker Robert Rivas (D-Hollister) hailed it as “an important first step” and said “the Assembly is committed to a deliberative, transparent budget process that protects hard-working Californians.”

But the lack of details in the announcement about the cuts that Democratic leaders are considering is an example of the complete opposite, said Sen. Roger W. Niello, a Republican from Fair Oaks and vice chair of the Senate Budget Committee, in a statement. He called it “unilateral decision-making happening behind closed doors by one political party.”

Check Out Also:  Understanding Meteorites: Their Significance in Studying Extraterrestrial Life

cropped cropped cropped cropped cropped Intellectuals Insider
+ posts
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

News

Is now the right time to invest in gold as prices have cooled?

gettyimages 1204672416


gettyimages-1204672416.jpg
Now may be the time to buy gold following a recent lull in its price.

Getty Images/iStockphoto

The price of gold has climbed to record highs recently and has remained strong through much of April. And, that growth continued until the precious metal traded at around $2,390 per ounce on April 19, 2024. But since, growth in the price of the precious metal has cooled, with gold’s price now hovering around $2,300 per ounce.

This lull in gold’s price may represent an investment opportunity.

In general, investing is centered around buying assets when prices are low and selling them when prices are high – generating a profit on the difference between the two. So, considering the declines in gold’s price over the past few days, now may be the time to make your investment. But is buying gold during this lull in prices really a good idea?

Compare your gold investment options among leading brokers now.

Gold prices have cooled. Should you buy in now?

With gold’s price down from recent highs, you may be wondering if now is the right time to buy in. There are several reasons the dip in gold’s price may represent an opportunity to buy. Here are some of the biggest:

Prices may rise again

If looking at a gold price chart shows anything for certain, it shows that changes in the overall growth of the medal come in fits and spurts. Periods of price growth are typically followed by periods of declines and vice versa.

But with inflation rising in recent months – and with gold’s reputation as a safe-haven asset that can hedge against inflation – it only makes sense that the price of the precious metal will eventually start to head up again in the future. While attempting to time that directional change may be tricky, buying the precious metal while the price is down gives you the opportunity to take advantage of any upward movement that may be ahead.

Add gold to your portfolio now before prices have a chance to rise.

You may be able to make a quick profit

Gold isn’t known as an asset in which you can earn a quick return, but in today’s market, that may be the case. Don’t forget that in January, gold was trading at just $2,000 per ounce. And, by mid-April, the commodity’s price had climbed to around $2,400 per ounce. That’s about 20% growth in a matter of months, much of which happened since March 1 – an impressive climb for any investment asset.

Perhaps more importantly, gold’s price growth through the beginning of 2024 shows that the commodity doesn’t have to be a buy and hold style investment that you keep in a safety deposit box or precious metal depository for years to come. There’s also the possibility that the commodity’s price could climb further ahead, making it a compelling way to potentially generate a quick profit.

There are other benefits of investing in gold

There are other benefits of investing in gold that have little to do with the price growth seen thus far in 2024 – or the lull in prices seen over the past couple of days. Those benefits include:

  • Inflation protection: Gold has long been considered an inflation hedge, and for good reason. When inflation drives the prices of consumer goods and services up – and the value of the dollar down – gold’s price tends to rise. So, it could be used to maintain the value of your portfolio during inflationary economic conditions. That’s important in today’s economic environment as stubborn inflation continues to weigh on the value of the dollar.
  • Portfolio diversification: Gold’s price doesn’t always move in the same pattern that bonds or stocks do. So, mixing a reasonable amount of gold into your portfolio (up to 10% of your portfolio assets) as a diversifier could protect you from losses should one or more of your traditional portfolio assets fall in value. “If you have less than 5% – 10% of your net worth in commodities & FX (forex), you should absolutely consider adding exposure to gold and other precious metals,” says Vijay Marolia, money manager and managing partner at the wealth management firm, Regal Point Capital.

The bottom line

Gold’s price has fallen from recent highs – which may represent an opportunity to tap into growth ahead. However, gold isn’t simply a “buy while it’s low and sell while it’s a high” kind of investment opportunity. The commodity can also protect your portfolio from the stubborn inflation we’ve seen thus far in 2024 while acting as a diversification tool that could increase your risk-adjusted portfolio returns. So, consider adding gold to your portfolio today while it has the potential to grow in value.

cropped cropped cropped cropped cropped Intellectuals Insider
+ posts
Check Out Also:  Five tips from experts on successfully potty training your child
Continue Reading

Featured

gettyimages 1204672416 gettyimages 1204672416
News2 weeks ago

Is now the right time to invest in gold as prices have cooled?

Now may be the time to buy gold following a recent lull in its price. Getty Images/iStockphoto The price of...

1 voyager artists concept 16 e1713838791668 1 voyager artists concept 16 e1713838791668
News2 weeks ago

Voyager 1 Communications Restored by NASA

NASA has successfully restored communication with the Voyager 1 spacecraft, much to the relief of mission engineers, scientists, and space...

80550955 80550955
Entertainment2 weeks ago

Kim Kardashian completes strange task before having her coffee

Kim Kardashian, the famous reality TV star and entrepreneur, recently revealed a bizarre quirk that she indulges in before she...

urlhttps3A2F2Fcalifornia times brightspot.s3.amazonaws.com2F8c2F9b2F6e42f28f4aea944452b86b0ba9cb2Fhttps delivery gettyimages.com2Fdownloads2F1848151224 urlhttps3A2F2Fcalifornia times brightspot.s3.amazonaws.com2F8c2F9b2F6e42f28f4aea944452b86b0ba9cb2Fhttps delivery gettyimages.com2Fdownloads2F1848151224
News3 weeks ago

Kevin McCarthy, former House Speaker, seeks revenge

Ousted House Speaker Kevin McCarthy is out for vengeance. After being voted out as House speaker, McCarthy left office at...

21uk labour 02 mjvk promo facebookJumbo 21uk labour 02 mjvk promo facebookJumbo
News3 weeks ago

Possible Future Colleague of Trump: David Lammy, a Close Associate of Obama

David Lammy, a prominent British politician with deep ties to the United States, is poised to become Britain’s foreign secretary...

13081 13081
News3 weeks ago

Juno discovers massive lava lake on Io

NASA’s Juno spacecraft recently made two close flybys of Jupiter’s moon Io, coming within 1,500 km (930 miles) of its...

80428178 80428178
Entertainment3 weeks ago

Bethenny Frankel reveals that her mother Bernadette Birk passed away from lung cancer

Bethenny Frankel, former star of “The Real Housewives of New York City,” is mourning the loss of her mother, Bernadette...

urlhttps3A2F2Fcalifornia times brightspot.s3.amazonaws.com2Fcf2F8c2Fdc0c07054e06a67a4adfd6298caa2F1436454 me 0415 parking 3 rcg urlhttps3A2F2Fcalifornia times brightspot.s3.amazonaws.com2Fcf2F8c2Fdc0c07054e06a67a4adfd6298caa2F1436454 me 0415 parking 3 rcg
News3 weeks ago

Forest Lawn Drive now free of RV encampment and parking

Nancy Sexton was thrilled when city crews cleared out more than 50 RVs in December that had been parked near...

00cli AmblerRoad facebookJumbo 00cli AmblerRoad facebookJumbo
News3 weeks ago

Alaska Ambler Road Project Denied by Interior Department

The decision by the Interior Department to reject the Ambler Road Project in Alaska is a significant win for environmentalists...

gettyimages 2147841407 gettyimages 2147841407
News3 weeks ago

House speaker receives additional request from GOP member to resign or be ousted

House Speaker Faces New Call by Another Republican to Step Down or Face Removal House Speaker Johnson says he’s not...

Advertisement

Facebook

Trending