Newsom: CA faces "billions of dollars" of budget shortfalls due to COVID-19

FRESNO, Calif. (KFSN) -- California Gov. Gavin Newsom is asking for federal support as the state faces significant budget shortfalls caused by the COVID-19 crisis.

The state has incurred significant expenses responding to the pandemic while at the same time seeing shrinking tax collections with many businesses and workers idled by stay at home orders.

Gov. Newsom made the announcement on Thursday during his daily briefing, where he also discussed a set of guidelines for some businesses to reopen this week.

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Gov. Newsom says he submitted a projected budget 90 days ago that was projecting a roughly $6 billion surplus for the state; after the COVID-19 crisis, the state faces "tens of billions of dollars of shortfalls."

The governor said the shortfalls have been foreshadowed for weeks and that they are the result of the pandemic, not mismanagement by the state.

Gov. Newsom added that the victims of the state's budget shortfall are frontline employees and essential workers. He also thanked President Trump and the federal government for their support so far.

He also said the state is better positioned to deal with the shortfall than with those of the past.

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