With the Legislature wrapping up the 2020 session last week, the focus is turning to the 2021 state budget. In a press conference Tuesday, Gov. Newsom mentioned his team has already been working on the initial January proposal.

According to Lauren Noland-Hajik of the ag lobbying firm Kahn, Soares & Conway, “the state will still face a projected deficit of about $8.7 billion next year, setting the stage for what could be an even more difficult budget problem.”

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The current budget, passed in June, counts on $14 billion in federal funding “that may or may not come.” Congress must pass the next aid package by Oct. 15. If not, state workers will face furloughs, and courts and universities will see drastic budget cuts. The state would also defer until the next fiscal year $12 billion in payments to community colleges and public schools.