In a budget proposal Wednesday, Gov. Gavin Newsom (D-CA) proposed cuts to various programs, including those to combat climate change, as California faces a significant budget deficit.

California’s government is charged with addressing a $37.9 billion deficit, partially driven by a notable drop in tax revenue from the state’s highest earners.

“This is a story of correction and normalcy, and one that we in some respects anticipated — the acuity perhaps not — and one we’re certainly prepared to work through,” Newsom said, assuring citizens of his ability to handle the budget problem.

In order to address the budgetary problem, Newsom proposed that California dip into its reserves, withdrawing $13.1 billion. He further suggested cutting $8.5 billion on spending across several areas, one of which was his often touted climate change initiatives.

“Thanks to the record reserves we have built up and a commitment to fiscal discipline over the years, our state is in a strong position to close this shortfall while protecting key priorities and programs that millions of Californians rely on,” Newsom said in a press release.

The Wednesday proposal called for spending $208.7 billion, which is 7% smaller than the California general fund budget for fiscal year 2024.

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Newsom’s proposal cuts about $2.9 billion from his efforts to combat climate change. Part of this proposed cut reportedly pulls $40 million from a program to help local governments address extreme heat, while another $23.5 million would be slashed for a program that would help deploy zero-carbon emission trucks into California’s transport industry.

Despite the fiscal crunch California finds itself in, Newsom is considered a front-runner to succeed President Joe Biden once Democrats look to find a new leader in 2028.