As Gavin Newsom is expected to begin a campaign for President, he surely couldn’t release a budget that has a shortfall–a deficit. Viola! Our deficit is gone and he can now go on his merry way. It appears that among the changes are a reinstatement of the Medi-cal asset test. If you make too much, you’re not getting free healthcare–it will cost you about $50 a month, illegal immigrants, $20. One might wonder why this hasn’t happened sooner. He also, of course blamed Trump.
Some History: Read what Jon Fleischman wrote about the California Legislative Analyst wrote about the budget in January–it sounded the alarm–here.
CalMatters says this about the budget:
The governor’s presentation is an updated outlook at the state’s finances since January, when Newsom’s administration projected a “modest shortfall” of $2.9 billion that would grow to a $22 billion deficit in fiscal year 2027-28.
Since then, tax revenue grew faster than anticipated, thanks to a robust stock market and California’s flush AI-driven technology sector. Newsom projects that the state will see $16.5 billion more in revenue over a three-year budgeting window than expected in January.
But Newsom said the state’s financial outlook remains ominous, attributing much of the uncertainty to Trump’s policies, including a spending plan the president calls his “one, big beautiful bill,” which could strip 2 million low-income Californians of health insurance coverage. Newsom also slammed the war in Iran, which has sent gas prices skyrocketing nationwide.
Also worth noting, John Kobylt on KFI Radio reports that while Newsom is claiming revenue growth during his term was 38%, adjusted for inflation, growth was closer to 16%.
If you are so inclined, you can watch the entire show here:
