Newsom set to unveil his last budget. An $18 billion deficit awaits.
CalMatters••nation
Key Points:
- California Governor Gavin Newsom faces a projected $18 billion budget deficit in his final spending plan, a sharp contrast to the $21.4 billion surplus he inherited in 2019, driven by rising spending, federal funding cuts, and economic uncertainties.
- The Legislative Analyst’s Office warns the deficit could grow to $35 billion annually without sustainable revenue increases or spending cuts, but political resistance to tax hikes and service reductions complicates efforts to address the shortfall.
- Medi-Cal, California’s largest health insurance program, is a prime target for cuts due to rising costs and reduced federal funding, though such cuts risk political backlash and damage to Newsom’s legacy of expanding health care access.
- Newsom opposes proposed wealth tax measures, wary of
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