UNEXPECTEDLY: Gov. Newsom Announces California Budget Deficit Bigger than Projected
Remember when Newsom went to Florida to bash Gov. Ron DeSantis. DeSantis is having the last laugh, as his budget includes proposed tax breaks for Floridians.
I recently noted that California Governor Gavin Newsom was not enthusiastic to write reparations checks as Big Tech banking troubles and residents fleeing the state (along with their businesses) have left the Golden State a bit cash-strapped.
It turns out the state’s economic situation is worse than I imagined, and I had imagined fiscal purgatory.
California Gov. Gavin Newsom (D) unveiled a revised $306.5 billion budget proposal on Friday, while announcing the state’s budget deficit had grown to $31.5 billion.
This shortfall is about $9 billion more than the $22.5 billion gap he projected in his initial January budget proposal, which totaled about $297 billion.
“We are walking into a budget where we need to maintain our prudence, and we need to prepare not just for the short term but the medium and long term,” Newsom said at a Friday press conference, where he presented the revised proposal.
Recognizing the current environment of economic volatility, Newsom stressed the importance of taking that uncertainty “very soberly and seriously as it relates to macroeconomic headwinds.”
Much of the budget uncertainty stems from Sacramento not being able to predict exactly how much revenue it will be bringing in over the next year.
Delayed tax deadlines because of storms that inundated the state, the impasse in Washington over the federal debt ceiling and the looming threat of a recession all add to the uncertainty.
“We’re going into a budget in a way we’ve never gone into a budget before,” Newsom said. “We need to prepare not just for the short term, but for the medium and the long term.”
Newsom and lawmakers rely on state analysts’ predictions about how California finances will look over the next year to craft their state budget plan. They’ll have to make decisions about how to structure the state budget by the July 1 start of the upcoming fiscal year, before they have a clear picture of tax receipts from 2022 because the tax filing deadline in most counties has been pushed back to Oct. 16.
Remember when Newsom went to Florida to bash Gov. Ron DeSantis? DeSantis is having the last laugh. Given Florida’s record budget surplus under his leadership, DeSantis’ budget includes proposed tax breaks for Floridians.
DeSantis calls his proposed budget, which totals more than $114 billion and is $4 billion over last year’s, “a framework for freedom,” and said it includes new and expanded tax breaks — including an additional $1.5 billion in consumer relief, on top of the $500 million Toll Relief Program which began on Jan. 1.
The governor is proposing:
- Two back-to-school sales tax holiday periods instead of one
- Temporary tax breaks on pet food and over-the-counter pet medications
- A permanent tax break on baby supplies like food, diapers, strollers and more
- New sales holidays on household supplies that cost less than $25, including dental supplies, toiletries, toys and athletic equipment
- An additional $12 million in migrant flights
“This is going to be really, really good for families in Florida,” DeSantis said. “If you do all this stuff — if a family commutes, if they have young kids and all this stuff — you’re talking potentially thousands of dollars in savings when all this is said and done.”
The Framework for Freedom budget abolishes sales tax for:
– Baby necessities including diapers, wipes, clothes, strollers and cribs
– Over-the-counter pet medications
– Gas stoves pic.twitter.com/WhJtN8jNNR— Ron DeSantis (@GovRonDeSantis) February 1, 2023
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Comments
California black reparations offer has now been revised to $1 billion and a pack of Kools.
They just banned Kools. California is now the best third world nation state close to the US but now competing with Mexico. Have to give them credit… turning the golden state into a urine colored one. VDH points out that Cali went from the envy of the country in the 60’s to only an envy of Venezuela. With the coming recession/depression plus inflation there will be only two classes left…. the very rich but fading and the poorer serf class…. 1960’s ..Surf’s up 2020’s… Serfs up
I propose one dollar a year for a billion years.
Plus, a choice of either one bottle of Colt .45 malt liquor, or, Seagram’s gin.
You left out Hennessy brandy or whatever it is.
Right; that libation complete the hip-hop trifecta of preferred alcoholic beverages.
Newports.
This is my shocked face :0
I’ll say it again. Reparations was all show and no go from the git go if for no other reason than because the money never existed to pay for it.
This was sold to the ignorant masses like a lottery ticket. Vote for us and we’ll give you the millions you deserve from mean old whitey.
Give it some time to quietly simmer and it will rear its ugly head again in the 2024 elections.
Wonder what would happen if a reporter asked Gov. Hairgel about what happened to the recent surplus…
The reporter would be “disappeared” by the Leftists, both government and media.
Subotai Bahadur
The more the DemoncRats drive the state into the gound with high taxes, woke-ism, failing K-12 schools, shrunken police forces, Soros backed prosecutors, and widespread homeless encampments, the more that budget deficit is going to grow. And, oh yes, I forgot to mention its nut-zero goals, which will drive the state back into the 19th century, and along with that a catastrophic shrinking of the tax base.
The level of spending in CA is crazy. Dividing the State Budget by their 52 Congressional Districts shows $5.9 Billion each. Florida spends $4 Billion per CD. IOW CA spends not quite 50% more per CD than Florida. I doubt the quality of life, public safety, schools, roads and so on are equal to Florida much less 50% better.
At this rate Newsom’s hair will simply fall out.
The funniest (most ironical?) part of the article:
The Framework for Freedom budget abolishes sales tax for:
– Gas stoves
So sad, they are running short of “other people’s” money to spend.
That can happen when 500,000 of your wealthiest and most productive people leave that state.
It will be interesting to see how greasy Newsolini attempts to spin his manifestly disastrous, profligate and inept fiscal stewardship.
It would be nice if he shut his fat mouth for a few minutes and stopped his play-acting charade, posing as an actually competent governor.
To the dolt who down-voted my comment — I await your rebuttal. Prove that Newsolini is anything but a hypocritical, incompetent tyrant. You can’t, so, go to hell and piss off.
This guy is Kamala Harris without the kneepads. In fact, he’s worse:
https://www.ocregister.com/2021/06/12/gavin-newsom-and-sacramentos-culture-of-corruption/
OK, Newsom just really is not trying. If he pushed his policies just a bit harder, they will be paying their bills with post-dated checks and monopoly money.
They are going down the tubes. They cannot be saved at this point. The only remaining thing is for all non-Leftists in California to come back to America and be out of there when the organic waste impacts the rotating airfoil.
Subotai Bahadur
The Thatcher Theorem at work…. they ran out of other peoples’ money. Next move… digital currency where the Feds will allow seizure of bank accounts to take from those that escaped the PDRK.
Black reparations = Cargo Cult Mentality
If we say the right words, yell, dance, stamp around, burn stuff, etc., white men will give us what we want.
“we need to maintain our prudence”
Letter Never Sent.
The biggest reason for the shortfall, the one that the criminal Newsom will not mention, is the deep and pervasive fraud and waste in his administration, of the taxpayers’ money.
One needs to look no further than our fuel taxes, as a very clear example. By law, these taxes are specifically designated to go to repairing and maintaining our roads. Having tricked California voters into approving a deceptively-worded ballot initiative, these taxes are now being increased, every year. The roads are not being fixed, and every year, the excuse that the money isn’t there to fix them is being used to raise this tax, to bring in more revenue that still isn’t being used to fix the roads.
If the fuel taxes were being used as the law requires, if they were not being criminally-misappropriated, stolen, or wasted, then California should have the very best roads in the nation, for what we are paying for them. I think that anyone who drives in California can clearly see that we do not have the best roads anywhere.
This is what you get when you vote for Democraps.