California: Newsom Slashes Budget After Turning $98 Billion Surplus Into $22.5 Billion Deficit in Single Year – IOTW Report

California: Newsom Slashes Budget After Turning $98 Billion Surplus Into $22.5 Billion Deficit in Single Year

WFB: Climate change and mental health funding on chopping block in 2023.

California Gov. Gavin Newsom (D.) revealed Tuesday that the state faces a $22.5 billion deficit in the coming fiscal year, a far cry from last year’s $98 billion surplus.

Newsom announced the deficit in a speech unveiling his proposed 2023-24 budget, which includes $297 billion in spending proposals, an $11 billion decrease from last year. The Democrat acknowledged that the state is “in a very volatile moment … of uncertainty,” which he noted could worsen over the coming months.

The governor dismissed the “old narratives” that Democrats are “profligate” and incapable of “managing budgets,” instead laying the blame on California’s dwindling tax base, which is now roughly half of what it was last year.

It was an atypical speech for Newson, who has a history of dispensing politically advantageous cash. Newsom sent $600 stimulus checks to each Californian, which landed in mailboxes shortly before a 2021 vote to recall him from office. Last year, the governor spent the $100 billion surplus on temporary spending for homelessness, climate, mental health, and other programs.

Now, just five days into his second term, Newsom is singing a different tune. The governor announced a strategy of spending “delays,” including on mental health, preschool “inclusion” grants, climate programs, and University of California capital investment. His budget also proposes using federal dollars to make up for reductions to the state’s much-touted climate initiatives.

California public schools, where students have performed poorly since the pandemic closures, will see a funding boost. Newsom is also maintaining billions in homelessness spending and won’t delay plans to roll out health coverage for illegal immigrants. MORE

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14 Comments on California: Newsom Slashes Budget After Turning $98 Billion Surplus Into $22.5 Billion Deficit in Single Year

  1. Don’t panic! There is still plenty of funding for out of state abortions, sex reassignment surgery for minors, and medical care, welfare, housing and food stamps for illegals.

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  2. Oh the liberals are going to go crazy with a mental illness budget cut. Great! I’m convinced mental illness can’t be cured. What’s crazy anyways? I see crazy being embraced by those doling out the worthless cures. We often read of people who died and had been under many years of psychiatric care.

    Well, I got my refund the other day in the mail with part of that $98 billion surplus. $700 – that’ll buy a roll of toilet paper. I quickly cashed it out.

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  3. “The Democrat acknowledged that the state is “in a very volatile moment … of uncertainty,” which he noted could worsen over the coming months.”

    Hmm, I wonder why…

    “laying the blame on California’s dwindling tax base, which is now roughly half of what it was last year.”

    Hmm, curiouser and curiouser…

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  4. @Mrs radiomattm : I know plenty of families that have moved out of here (CA) for greener pastures. I think they’re discovering that politics change every 4 years, property taxes have increased dramatically for their new residence, and securing homeowners insurance in places like Florida is impossible. Did I mention wages were also a big shock, they are working more and getting paid less. So, like what Reagan did here in CA, he closed all the nut houses. Liberals complain about that on and on. Cutting mental illness funds outta fry their chaps.

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  5. Goldenfoxx

    We’ve threatened to move out of state. Leading contender was AZ. Well not anymore. We are now of the mind that California will hit critical mass way before the rest of the states and then it will be a decent place to live again. Might as well stay put.

    PS, I guess this means we can’t give every black homeless person 1 million dollars.

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  6. Goldenfoxx, the Mr. and I moved from the (not so) Great White North to Texas last March. We consistently see (a not small amount of) California/Oregon/New York plates. In fact when we were house hunting, there was always a California plate on at least one car parked outside the “Open House” viewings. Can’t speak to Florida (and we are retired so wages are not an issue for us) but housing in TX is way less expensive than where we came from, so is food, gas, liquor and income and sales taxes. Yes, property taxes are higher. No issue with homeowners insurance in TX am curious as to why it’s a problem in Florida?

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