Gavin Newsom's spending could put California in budget hell
By Josh Koehn
Published on April 30, 2026.
California's Governor, Gavin Newsom, is set to leave behind a legacy of structural budget deficits of between $20 and $30 billion, according to a report by the state's Legislative Analyst's Office. The report revealed that while revenue may have increased by $100 billion since Newsom's presidency, costs to maintain services have increased and the state has used surplus funds for discretionary spending. The LAO also found that about 70% of the $100bn increase in spending was used to sustain existing services, including Medi-Cal, K-14 education, developmental services, and Medic-Cal coverage. The remaining 30% included expansion of university funding, childcare, police oversight, firefighting services and Medi/Cal coverage, including health care of undocumented immigrants. Critics have accused Newsom of ignoring fiscal discipline and maintaining a balanced budget. The state's Department of Finance maintains steps are being taken to address the deficit.
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