{"id":72084,"date":"2026-05-15T07:22:23","date_gmt":"2026-05-15T07:22:23","guid":{"rendered":"https:\/\/www.europesays.com\/people\/72084\/"},"modified":"2026-05-15T07:22:23","modified_gmt":"2026-05-15T07:22:23","slug":"gov-gavin-newsom-says-his-last-budget-is-fiscally-sound-some-see-trouble-ahead","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/people\/72084\/","title":{"rendered":"Gov. Gavin Newsom says his last budget is fiscally sound. Some see trouble ahead"},"content":{"rendered":"

During the presentation for his final budget proposal<\/a>, Gov. Gavin Newsom said leaving a $0 deficit for the next few years was in the \u201cspirit\u201d of his predecessor, Jerry Brown, who left him an $8.9 billion surplus and a bolstered rainy day fund.<\/p>\n

\u201cI think it\u2019s deeply part of his legacy, and I wanted to continue,\u201d he said.<\/p>\n

Senate budget leader Roger Niello, R-Fair Oaks, disagrees with the self-assessment, saying after the presentation that Newsom\u2019s legacy \u201ccertainly won\u2019t be as good as Governor Brown\u2019s.\u201d<\/p>\n

\u201cWhen the governor leaves office, he will be leaving the next governor ongoing structural deficits from 2028 on\u2014 the next governor and the rest of we Californians. I don\u2019t think that\u2019s a very good legacy,\u201d he said.<\/p>\n

Others, too, have expressed concern that the May Revision leaves them in the lurch \u2014 especially counties and immigrant rights advocates, who say Newsom\u2019s balanced budget kicks additional costs to local government and adds more cost pressures for certain immigrants.<\/p>\n

Unsustainable revenues balance budget, pressures remain<\/p>\n

The state\u2019s deficit, which shrank from an estimated $2.9 billion in January to $0 for the next few years, was eliminated in part due to high tax collections this year, driven by enthusiasm around artificial intelligence. Newsom touted during his presentation that revenues had come in $53.6 billion higher than what the Legislative Analyst\u2019s Office had estimated in November. However, all parties, including the governor, have acknowledged that the funding from AI revenues is not sustainable.<\/p>\n

Niello said Newsom and Democratic leaders should have done more these past few years to study where spending isn\u2019t paying off for the state and made cuts there.<\/p>\n

\u201cThis stock market looks a lot like the dot-com crash of 25 years ago,\u201d he said. \u201cStock markets never go up forever. And the further they go up in terms of inflated values, the harder the fall. And I\u2019m very concerned.\u201d<\/p>\n

Meanwhile, the California State Association of Counties, which represents the state\u2019s 58 county governments, say Newsom\u2019s administration has only funded a sliver of their $1.9 billion<\/a> ask when it comes to assistance with the changes wrought by the Trump Administration\u2019s \u201cOne Big Beautiful Bill Act,\u201d or H.R. 1.<\/p>\n

The governor has committed to give counties $262 million in one-time funds to support the additional workload mandated by the H.R. 1 changes. CSAC estimated that counties would need<\/a> $600 million annually for the additional administrative duties.<\/p>\n

\u201cThere is not funding for hospitals, there is not funding for indigent care, there is not even remotely close to sufficient funding for the eligibility work that is needed to keep people on Medi-Cal,\u201d said CSAC CEO Graham Knaus.<\/p>\n

Newsom\u2019s budget proposal does include some additional funding for counties, a new proposed tax of digital prewritten software and software as a service, which he said would increase local sales tax revenue by $560 million in 2026-27 and increase to $1.1 billion annually. Knaus said that sales tax revenue is split between cities and counties, and is offset by counties needing to take on more of the responsibility of paying for the In Home Supportive-Services program.<\/p>\n

There is also $50 million in the latest proposal for \u201chospitals in immediate and significant financial distress,\u201d an amount that California Hospital Association called \u201ca strong starting point.\u201d<\/p>\n

During his presentation Thursday, Newsom said the state had provided a number of supports for counties, and later said he had had to get creative with budget challenges during his time as mayor of San Francisco.<\/p>\n

\u201cTo the extent that this will require them to do things differently, the next few years of the Trump administration, we all are going to have to do things differently,\u201d he said of county leaders.<\/p>\n

Immigrant rights advocates raised concerns with changes to the Medi-Cal program for adults with unsatisfactory immigration status, especially after the state Senate forecast<\/a> in its plan that additional cost burdens wouldn\u2019t be necessary, and that some could be delayed.<\/p>\n

\u201cThe governor\u2019s budget continues devastatingly cruel cuts to healthcare for the most vulnerable immigrant communities that were proposed in January \u2014 and have already been firmly rejected by the state Senate,\u201d said Kiran Savage-Sangwan, executive director of the California Pan-Ethnic Health Network, \u201cIn light of the state\u2019s surge of revenues, continuing to advance these brutal cuts, despite a nine-month delay, is further evidence that they aren\u2019t a matter of math but a matter of values.\u201d<\/p>\n

The May Revision is the jumping off point for negotiations that will continue until the budget is passed in mid-June.<\/p>\n","protected":false},"excerpt":{"rendered":"During the presentation for his final budget proposal, Gov. Gavin Newsom said leaving a $0 deficit for the…\n","protected":false},"author":2,"featured_media":72085,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[147],"tags":[4326,41377,542,13005,41376],"class_list":{"0":"post-72084","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-gavin-newsom","8":"tag-budget-proposal","9":"tag-california-state-association-of-counties","10":"tag-gavin-newsom","11":"tag-jerry-brown","12":"tag-roger-niello"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@people\/116577392596642444","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/posts\/72084","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/comments?post=72084"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/posts\/72084\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/media\/72085"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/media?parent=72084"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/categories?post=72084"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/people\/wp-json\/wp\/v2\/tags?post=72084"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}