Governor Gavin Newsom is expected to unveil a proposed budget in the next week, addressing California’s 68-billion-dollar shortfall. Concerns about potential spending cuts arise, especially in education.

The California School Boards Association discussed alternatives outlined by the Legislative Analyst’s Office, such as tapping into the 8-billion-dollar education reserve and reallocating unassigned program funds.

The LAO’s report made no mention of the billions in tax revenue lost by California due to the exodus of its people and businesses, but said the massive deficit increase and lower revenues were largely driven by a change to the state’s tax filing deadline and poorer than expected economic conditions.

California saw its first-ever population decline in 2020 when the state imposed rigid lockdowns during the COVID-19 pandemic. From January 2020 to July 2022, the state lost well over half a million people, with the number of residents leaving surpassing those moving in by almost 700,000.