CA Fiscal Watchdog Says Gov. Newsom’s Revised Budget Leaves State ‘Ill-Prepared for a Slip-Up’
The analyst office said the plan leans on $20 billion in reserves and one-time money while planned spending still outpaces revenue.
- On Thursday, Governor Gavin Newsom released a budget proposal aiming to balance state finances, though the Legislative Analyst's Office warns California still faces a $16.9 billion deficit.
- Despite revenues exceeding predictions by $30 billion, the state continues to face significant structural shortfalls, according to Rachel Ehlers, deputy legislative analyst for the Legislative Analyst's Office.
- To bridge the gap, the administration plans to use $20 billion through reserve withdrawals and suspended funding requirements, a strategy Stephen Benson of the California Department of Finance described as taking important steps.
- The proposal includes tax relief, such as halving LLC fees, but Republican Senator and business owner Roger Yolo criticized the measure, arguing it fails to provide meaningful assistance to businesses before they become profitable.
- While the governor claims the budget remains structurally balanced for the next 18 months, Ehlers noted that projected expenditures still exceed revenues, necessitating continued reliance on reserves for future fiscal years.
14 Articles
14 Articles
thepress.net
California lawmakers, officials discuss state's $16.9B deficit
(The Center Square) – Officials from the Legislative Analyst’s Office told lawmakers on Tuesday that despite California Gov. Gavin Newsom’s latest budget proposal, lawmakers need to consider the “gray cloud in the silver lining” as they work on the final…
The Myth of Two Balanced Budgets, California and New York City
Both California Governor Gavin Newsom and New York City Mayor Zohran Mamdani claim to have balanced their respective budgets, but in both cases, they are running huge deficits while creating the illusion of balance through creative accounting and bailouts. Liberal commentators are hailing Gavin Newsom and Zohran Mamdani as proof that socialist governance works, that a government can expand free programs, tax the wealthy, and still balance the bo…
CA fiscal watchdog says Gov. Newsom’s revised budget leaves state ‘ill-prepared for a slip-up’
California Gov. Gavin Newsom’s latest budget plan leaves the state “overextended” and vulnerable in the event of a stock market decline, according to the Legislative Analyst’s Office.
California Globe
ussanews.comCA Budget: Legislative Analyst says ‘State is Ill-Prepared if Revenues Drop’
Last week California Governor Gavin Newsom released his May budget revise, and blamed the President’s policies–especially tariffs– for contributing to a worsened budget outlook. And then he claimed his final May budget revise is “miraculously balanced.” The California Legislative Analyst’s Office disagreed with him last January, and disagrees now. As we reported, Newsom proposed roughly $322 billion in total spending and about $226 billion Gener…
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