Newsom offers early peek at rosy budget projections
Los Angeles Times • • nation
Key Points:
- Governor Gavin Newsom's office released projections of a $16.5 billion state revenue windfall over three years ahead of his budget plan presentation, offering a positive outlook on California's fiscal position through 2028.
- Despite the revenue increase, Newsom's office provided limited details on spending cuts or adjustments needed to address projected deficits from 2026-27 through 2027-28.
- The state faces a structural deficit as spending has outpaced revenue growth by about 10%, raising concerns about the long-term affordability of existing and new programs enacted since 2019.
- Newsom's budget includes a proposal to cap corporate tax credits starting in 2027 and new spending initiatives such as $300 million to maintain $0 premiums for low-income healthcare coverage and $100 million for wildfire victim construction loans.
- Additional measures include a plan to provide 400 free diapers for every California newborn at select hospitals, with the full budget expected to be detailed in Sacramento later on Thursday.