California lawmakers are forcing state agencies to propose budget cuts as the state confronts a $35 billion annual deficit starting in fiscal year 2026-27, with agencies now identifying positions and programs to eliminate despite warnings that the savings are minimal compared to the policy damage.

Parks Department Targets Vacant Positions

The California Department of Parks and Recreation plans to eliminate currently vacant positions across the state. Marty Greenstein, deputy director of communications and marketing for California State Parks, confirmed the department spread reductions throughout California to minimize visitor impact while maintaining core operations focused on health and safety. The department retains some vacant positions to address operational needs as resources allow, providing flexibility during the budget crisis.

Lawmaker Calls Cuts Penny-Wise, Pound-Foolish

Assemblymember Cottie Petrie-Norris, a Democrat from Irvine, challenged proposed cuts during an Assembly Budget Subcommittee meeting. She specifically criticized the California Department of Fish and Wildlife budget reduction proposals, which would save only $4.6 million while gutting programs. Petrie-Norris noted the agency currently meets just 40 percent of its permitting and environmental protection mission. She argued the general fund savings are trivial while the policy cost is enormous, supporting the Legislative Analyst’s Office recommendation to reject the proposals.

Budget Numbers Remain Moving Target

H.D. Palmer, deputy director of external affairs for the California Department of Finance, told reporters that Governor Gavin Newsom’s team has not finalized decisions beyond January proposals. The revised budget, known as the May Revise, will reflect updated projections. January estimates projected only a $3 billion shortfall, significantly below the Legislative Analyst’s Office November 2025 projection of $18 billion. Conflict in Iran and $8.6 billion in increased tax revenues improved the outlook, but rising Medi-Cal spending complicated the revenue picture.

Governor Eyes Two-Year Solution

Newsom aims to solve budget problems not only for 2026-27 but also the following fiscal year, according to Palmer. The administration continues evaluating potential scenarios and options. State officials warn nothing is final until the May budget revision is released. The dramatic shift from a $3 billion to $35 billion deficit projection highlights the uncertainty facing California’s fiscal planning as agencies prepare for significant reductions.