Annie Gaus writes for the New York Post about the California governor’s latest predicament.
California Gov. Gavin Newsom is waking up to a $18 billion budget hangover — and fixing it won’t be pretty.
After years of surpluses, the Golden State is facing staggering deficits that could balloon to $35 billion in the coming years, according to the state’s Legislative Analyst, after a years-long spending spree combined with federal funding cuts and a struggling economy.
Newsom — who’s expected to launch a 2028 presidential bid — unveils his plan to stanch the bleeding in a major speech Thursday. In it, he’ll posture as presidential while aiming to reassure cash-strapped Californians that he’s leaving leave the state in tiptop shape in his final year in office.
Critics doubt it will be enough.
“Governor Newsom’s speech will highlight a lot of claimed wins, but Californians see the lack of results every day,” said Senate Republican Leader Brian Jones of San Diego in a statement.
“Year after year, his policies have pushed opportunity out of state while driving the cost of living to ever new heights for working families,” Jones continued.
Only about four years ago, California was flush with cash — with a jaw-dropping surplus of $100 billion, thanks to a rollicking stock market and Covid-era cash infusions from the federal government.
Since then, revenues — driven by capital gains taxes on the rich — shrunk as the economy took a nosedive.
California’s unemployment rate was the highest in the nation as of September as everyday residents feel the pinch from high prices on food, housing and gasoline driven by a mix of federal and state policies.
The Trump administration and Republicans in Congress have pushed through sweeping cuts to everything from transportation dollars and healthcare funding to Supplemental Nutrition Assistance (SNAP). Just this week, Trump froze billions in childcare and social services funding over claims of fraud — potentially further draining California’s piggy bank.
