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"What we all need to remind people is that we are modeling the outlook for a future recession – a more modest recession than 2007, but a little more intense than in 2001," he said. Newsom press.
He added that the current economic expansion is ten years old and that "we are feeling anguish".
According to Newsom, the financial markets of the last 48 to 72 hours have raised concerns about the outlook.
"We are thinking about this and are wise in terms of budgeting and planning strategies," said the governor. "The headwinds are real."
Last January, Newsom unveiled its first state budget as governor and also expressed concern over the economic outlook. His predecessor, Governor Jerry Brown, took office in 2011, while Golden State was still recovering from a recession and was facing a deficit of about $ 27 billion.
Newsom said the revised budget earmarked $ 15 billion to "strengthen budget resilience" as well as to repay the state's unfunded liability, or $ 1.4 billion more than the one proposed in January. It includes $ 4.5 billion to eliminate budgetary debt and $ 4.8 billion to repay unfunded pension liabilities.
Meanwhile, the fiscal year budget beginning in July 2019 also retains the funding proposed in January to expand the state's medical coverage program to young adults ages 19 to 25, regardless of their status. d & # 39; immigration. The governor's January plan estimated that the cost of extending health care to cover undocumented immigrants would cost about $ 260 million.
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