California Democrats Abandon Newsom’s $20 Million Legacy Fund

California Democrats have quietly removed Governor Gavin Newsom’s contentious $20 million plan to honor living former governors from the state budget. The proposal had faced notable bipartisan criticism, with many labeling it as a vanity project funded by taxpayers.

The idea, known as the “Governor’s Legacy” fund, emerged in Newsom’s budget amendment in May. It aimed to allocate taxpayer money for initiatives that would recognize former governors’ contributions to public service and policy.

Notably, the funding request was absent from the interim budget deal that Democratic lawmakers put together and passed this week.

On Thursday, Newsom’s office opted not to comment on the removal, directing inquiries to the Treasury Department instead.

State Senator Tony Strickland, a Republican from Huntington Beach, described the proposal as “laughable.”

Strickland expressed concerns, stating, “The Legacy Fund is totally tone-deaf when it comes to the affordability crisis in California. He probably realized it was completely out of touch; maybe one of his advisors suggested it wasn’t wise to move forward, as it could backfire on him.”

It’s still unclear whether this decision reflects a broader pushback against Newsom’s challenges during the waning months of his administration, especially as looming structural deficits remain a concern.

The proposal was met with immediate backlash. Even though the administration claimed the fund would not be used to honor the current governor, there were worries it could inadvertently end up financing a memorial for Newsom himself, who resigned in January.

Democratic Senator Caroline Menjivar criticized the initiative, prioritizing essential needs like health care over honoring former governors. “I have no intention of giving credit to the governor, past or present,” she stated. “My focus is on ensuring seniors, especially those with disabilities, have health insurance.”

Newsom’s office had argued that the fund was designed to acknowledge significant contributions and public policy advancements made by living former governors from both political parties, including Pete Wilson, Gray Davis, Arnold Schwarzenegger, and Jerry Brown.

However, many lawmakers, regardless of party affiliation, questioned the prudence of establishing such a fund.

State Senator Christopher Cabaldon, a Democrat with experience under multiple governors, remarked that lawmakers were being asked to approve substantial funding without enough details, oversight, or clear targets. “There’s really nothing here,” he commented during a budget hearing. “There’s no proposal to respond to.”

Despite higher-than-anticipated tax revenues, the nonpartisan Legislative Analysis Office (LAO) cautioned lawmakers against further discretionary spending due to ongoing structural deficits.

This caution seems to have been overlooked by Newsom, and lawmakers appear to have taken a stand against his push.

“Considering the structural deficit, the overall guidance is for Congress to avoid increases in discretionary spending as part of the budget plan,” stated Nick Schroeder, LAO’s chief fiscal and policy analyst. “Excluding this proposal aligns with that recommendation.”

Newsom has been accustomed to receiving public accolades. Just months prior to his election as governor in 2018, a privately funded bronze bust celebrating his tenure as mayor of San Francisco was installed at City Hall, which led to revelations that companies connected to Newsom had funded it.

While the legacy fund may not have made it into the budget, there remains a $33,000 allocation for a portrait of the governor.