California Gov. Gavin Newsom (D) insisted the state will have a modest budget surplus next year, but still plans to raid the “rainy day” emergency fund, prompting President-elect Donald Trump He warned about the president's spending cuts.
Newsom came under intense criticism last year after he turned what was once a $100 billion surplus into a nearly $50 billion deficit, thanks in part to coronavirus relief funding from the Biden-Harris administration. Newsom said there will be a surplus because of the current increase in income from wealthy taxpayers. But he believes President Trump's spending cuts, spurred by Elon Musk and Vivek Ramaswamy's work at the Department of Government Efficiency (DOGE) to cut federal waste by trillions, put the surplus at risk. He warned that he could be exposed.
of san francisco chronicle noticed:
Newsom's budget outlook is a significant turnaround from last year's $47 billion deficit and the year before, when the deficit was $32 billion. Both Mr. Newsom and the nonpartisan Legislative Analysis Service, which forecasts the Legislature's budget, attributed the increase to improved stock market gains and cuts from the previous year by the state's wealthiest taxpayers.
But Newsom warned that the deep cuts in federal spending promised by President Trump could darken the bright picture he painted of California's economy. Newsom said the next president could influence California's budget depending on developments in trade, tariffs and immigration policy. Newsom said something similar happened last time Trump was in office.
of Los Angeles Times reported Despite predicting a surplus, Newsom plans to pull $7 billion from the state's “Rainy Day” fund, officials said. The fund is intended for emergencies, not years of fiscal consolidation.
Gov. Gavin Newsom touted higher-than-expected tax revenues and a “decent surplus” in an unusual preview of next fiscal year's $322.2 billion spending proposal, but his office still says the state's rainy day reserve fund remains He said he plans to withdraw funds from the Regarding policy priorities.
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Mr. Newsom's office declared a fiscal emergency last year and announced that he would take $5.1 billion and an additional $900 million from the safety net reserve to balance the current budget, and that California's budget for the next budget year would be It announced plans to take an additional $7.1 billion out of its rainy day reserve.
The decision to put money into state savings accounts was part of an agreement with lawmakers last year to postpone programs, cut spending and occasionally rely on accounting tricks. To resolve the $46.8 billion deficit. California leaders were forced to make peace Last year, it had a deficit of $31.7 billion.
Newsom's budget includes $420 million in tax cuts for Hollywood and $25 million to pay legal fees for illegal immigrants fighting deportations by the incoming Trump administration after years of chaotic open borders. There is.
Joel B. Pollack is a senior editor at Breitbart News. Breitbart News Sunday Sunday nights from 7:00 PM to 10:00 PM ET (4:00 PM to 7:00 PM PT) on Sirius XM Patriot. he is the author of Agenda: What should President Trump do in his first 100 days?available for pre-order on Amazon. He is also the author of Trumpian Virtues: Lessons and Legacy of the Donald Trump Presidencynow available on Audible. He is the recipient of the 2018 Robert Novak Journalism Alumni Fellowship. Follow him on Twitter @joelpolak.
