California Governor Considers 10% Pay Cut To Workers Among Other Budget Cuts. Long Beach Weighs Options

Long Beach, CA

California Governor Gavin Newsom in an effort to balance the budget in unprecedented times due to the Coronavirus, is considering reducing state worker pay by 10 percent. This includes salary cuts to Cal Fire firefighters.

It is not clear yet if Long Beach is also considering doing the same.

The finance department for the state of California is projecting a deficit of 54 billion dollars. Before the Coronavirus rocked the nation, the state had an estimated surplus of 5.6 billion dollars.

Furloughs are also a possibility which has been offered to state workers in past budget deficits.

In addition to pay cuts for workers, Newsom is proposing to cancel previously approved spending increases that include 6.1 billion in program expansions, 700 million for homelessness services, 30 million for state parks, and 10% to the University of California and California State University school systems.

Long Beach is projecting a 25-41 million budget deficit in fiscal year 2020 according to Tom Modica, Long Beach’s new City Manager.

At a May 5th City Council meeting, 3rd District Councilmember Suzie Price asked the city manager to see how the city might focus on “the basic core services that every resident in the city is entitled to.”

A study session was conducted at this past Tuesday’s city council meeting but it is unclear yet what will be cut in Long Beach as we go into the future.

The Long Beach Business Journal in the past under the direction of former owner George Economides, started reporting on the $100,000 club which showed rising city salaries at the time. More recently, the $200,000 club was shared with the public.

In August of 2019, the Business Journal shared the highest paid city employee list with this image:

Critics of the city’s “stay at home” order have pointed to their inability to make a living, while a survey called ReopenLB was released to gauge the public’s response on how best to reopen the city.

Mayor Garcia in a statement on the survey said, “Our economic recovery survey gives every resident and local business an opportunity to weigh in on how to reopen the Long Beach economy in the safest way possible. We think the best ideas and most innovative ideas are going to come from the small business owners who know their business and customers.”

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