The State Governor proposed that the 26% of the deficit are budget cuts from programs he made in January that included education, healthcare, and, most of all, climate change spending.

In spite of this, and perhaps because in anticipation of backlash, Newsom assured that should U.S. President Donald Trump sign the Heroes Act from the House of Representatives, these budget cuts will be reimbursed by the federal government.

Climate Catalyst Fund a withdrawn proposal

The program was developed for the provision of loans to businesses and companies that were environment-friendly. The budget cuts proposed by Newsom last week would mean that the general fund would no longer be giving $250 million for them.

Earlier this year, the governor promised $12 billion of the state funds would be allotted for projects and programs by companies and organizations to encourage conversion to electric vehicles, environment-friendly business practices, and preparation and prevention of disasters.

The state's Office of Emergency Services was supposed to receive $127 million for the coordination of disaster and recovery responses brought by natural disasters across the state. In particular, Cal Fire should be able to get over $80 million additional funds for handling wildfires.

At around the same time, Newsom made a proposal of a grant worth $100 million for Californians to fortify their homes in natural disasters. Part of the budget was reserved for the preparation for California against sea level rise in coastal cities on the stateside.

Everything was scrapped. On Thursday, Newsom's deficit of an estimated $54 billion from the programs and projects was intended to balance the budget.

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Newsom to prioritize clearing air and water pollution

Before the state started mitigation measures against the COVID-19 pandemic, California's Legislative Analyst's Office already advised Newsom against the climate change fund after its proposal last January.

State tax collections are at an all-time low, businesses have closed for two months, and over 4 million Americans are unemployed. The mitigation measures against the transmission of COVID-19 has sent the state spiraling into an economic downturn.

According to the local government, the cuts are a product of the pandemic, which came so unprecedented that the administration was forced to compromise by making sacrifices they would not have been prepared to make in the past.

The budget cuts were not done without due consideration. The Newsom administration eliminated the programs in order to prioritize cleaning the air in vulnerable communities and providing potable water in the state.

However, the program of the state would enable industries to resume factory operations that would further pollute the air and the water. Reopening businesses would mean added credit for the state, but less for the environment.

Closures of businesses that were related to the coronavirus led to improvement of the air quality through the reduction of carbon emissions caused by cars.