Newsom’s budget proposal

Here are some of the cuts that Gov. Gavin Newsom proposed Thursday in his revised state budget:

⏩ Cutting pay for state workers: A 10% pay reduction for California’s roughly 234,000 state employees, including for Newsom and his staff. The governor said he would work with public employee unions to negotiate those cuts, but that they could be imposed if the state cannot reach an agreement. Union leaders say they will propose alternatives.

⏩ Cancel program expansions: $6.1 billion in expanded programs and one-time spending increases would be canceled. This would include eliminating plans to extend Medi-Cal health care coverage to undocumented immigrants over age 65.

⏩ Shifting pension payments: The state would redirect $2.3 billion intended to help pay down the unfunded pension debt in the California Public Employees’ Retirement System and the California State Teachers Retirement System. The state would use the money instead to pay pension contributions owed by school districts and community colleges.

⏩ Limit tax credits: Corporate tax credits would be temporarily limited to an annual maximum of $5 million per company. State finance officials estimate that could bring in an additional $4.4 billion next year and $5 billion in the two years after that.

⏩ Draw down rainy-day fund: Half the state’s $16 billion rainyday fund would be tapped to prevent further cuts. Newsom said the rest of the reserve would be drawn down over the following two years. His budget would also borrow or transfer $4.1 billion from the state’s special revenue funds to ease the immediate impact of cuts.