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California Coronavirus Update: Governor Gavin Newsom Says Real Unemployment Rate “North Of 20 Percent”; State Must Pull From Rainy Day Fund

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By Tom Tapp Deputy Managing Editor California Governor Gavin Newsom staged his Friday COVID press conference from a flower shop, but the news he delivered was not rosy.

Asked about declaring a budget emergency that would allow him to pull from the state’s $18 billion rainy day fund, Newsom admitted, “We will have to pull from our reserves,” before noting that “Our reserves are historically high.” That may be so, but with the state now facing a projected $54 billion budget deficit from this year to next, those reserves will not come close to closing the gap.

Newsom hinted at hard cuts that are to come next month, noting “we are constitutionally bound” to balance the state budget, “by the end of June.” The Governor said it is better to make

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