California finds itself teetering on the edge of a staggering budget shortfall, projected to be around ten billion dollars, or perhaps even more. This revelation comes hot on the heels of reports indicating that the state’s healthcare program, which controversially extends to undocumented immigrants, is running billions over budget. Compounding the situation are the ongoing recovery efforts from devastating wildfires that swept through large swathes of Southern California earlier this year.
It’s genuinely perplexing that some Democrats and media commentators still consider Governor Gavin Newsom a viable presidential candidate for 2028. One has to wonder—what exactly has he accomplished other than steering his state toward economic turmoil and population decline?
Breitbart News reports:
Gavin Newsom, California Faces Another Budget Shortfall; $10-$20 Billion
Governor Gavin Newsom and state lawmakers are preparing for a daunting $10 billion budget deficit—before even factoring in the federal spending cuts instigated by the Trump administration and the Department of Government Efficiency (DOGE).
In a remarkable turn of events, Newsom and his fellow Democrats managed to transform a nearly $100 billion surplus in 2022—partly buoyed by federal COVID-19 funds from the Biden administration—into a deficit that could reach nearly $50 billion by 2024.
Earlier this year, the state was compelled to borrow $6.2 billion to sustain Medi-Cal, its Medicaid program, which has seen significant expansion under Newsom to include undocumented residents.
Further insights from Politico reveal:
Governor Gavin Newsom is potentially facing a $10 billion budget gap that could escalate to $20 billion or beyond.
The economic landscape has darkened due to President Donald Trump’s tariff policies, a shortfall in Medi-Cal funding, and delays in tax filings from victims of Los Angeles-area wildfires. This confluence of factors places California in a more precarious financial position than Newsom initially predicted—without even considering upcoming federal funding cuts.
At the start of January, the governor’s Department of Finance had projected a modest surplus for this year. However, as budget deadlines loom, Newsom and legislative leaders find themselves navigating a fiscal labyrinth, exacerbated by tariffs and a drop in tax revenue, including contributions from some of the wealthiest Californians.
It’s ironic, isn’t it? Residents of a state boasting the highest taxes in the nation are now confronted with the grim news that their leaders are scrambling to cover a budget shortfall exceeding ten billion dollars. The situation is nothing short of outrageous.
