US EditionWhy the Legislature’s Budget Proposal Would Put California in an Even Deeper Hole
- Legislative leaders will pass a 2025-26 budget this week in California that increases spending to $232 billion, surpassing projected revenue by about $20 billion.
- This spending growth follows a pattern of overspending revenues based on faulty assumptions of sustained revenue booms, with warnings from analyst Gabe Petek and agreement from Gov. Newsom’s staff.
- The legislative budget partially restores some social services and homelessness grants while including $100 million for Proposition 36, which voters passed last year over Newsom’s opposition.
- Petek indicated that revenue increases are not expected to keep pace with the rising expenditures, suggesting that lawmakers may need to intervene to address a structural deficit projected to range from $10 billion to $30 billion each year.
- The increased spending deepens California’s fiscal gap and mirrors budget challenges faced in 2011, implying Newsom’s successor may need to implement serious spending cuts or tax increases to restore balance.
20 Articles
20 Articles
Budget proposal would put California in an even deeper hole
During his annual report on the state’s finances last fall, legislative budget analyst Gabe Petek warned that budget spending was increasing by about 6% a year while revenues were growing by just 4%. “Taken together, we view it as unlikely that revenue growth will be fast enough to catch up to ongoing spending,” Petek said, adding “in the coming years, legislative action could be necessary to close this gap.” Petek’s admonition is falling on dea…
DAN WALTERS: Why the Legislature’s budget proposal would put California in an even deeper hole
During his annual report on the state’s finances last fall, legislative budget analyst Gabe Petek warned that budget spending was increasing by about 6% a year while revenues were growing by just 4%.
East Bay Times
The Mercury newsWalters: Why the Legislature’s budget proposal digs an even deeper hole
During his annual report on the state’s finances last fall, legislative budget analyst Gabe Petek warned that budget spending was increasing by about 6% a year while revenues were growing by just 4%. “Taken together, we view it as unlikely that revenue growth will be fast enough to catch up to ongoing spending,” Petek said, adding “in the coming years, legislative action could be necessary to close this gap.” Petek’s admonition is falling on dea…
LA Daily News
Why the legislature’s budget proposal would put California in an even deeper hole
Petek’s admonition is falling on deaf ears.
Why the legislature's budget proposal would put California in an even deeper hole
During his annual report on the state’s finances last fall, legislative budget analyst Gabe Petek warned that budget spending was increasing by about 6% a year while revenues were growing by just 4%. “Taken together, we view it as unlikely that revenue growth will be fast enough to catch up to ongoing spending,” Petek said, adding “in the coming years, legislative action could be necessary to close this gap.” Petek’s admonition is falling on dea…
Coverage Details
Bias Distribution
- 63% of the sources are Center
To view factuality data please Upgrade to Premium
