Now Gavin Newsom Claims California Has Eliminated Its Budget Deficit, Is Back in Surplus Times

Governor Gavin Newsom announced that California has eliminated a $68 billion budget deficit and is now running a modest surplus, although he hasn't disclosed specifics.

Despite recent progress in California's finances, Governor Newsom warned of potential challenges ahead, particularly due to policies from the incoming Trump administration, stating, 'We're walking into headwinds, he added. We need to be prepared.'

The recovery to a surplus is attributed to significant income gains from California’s top earners and increased capital gains tax revenues, as high earners contribute almost half of the state's tax collections.

While Newsom's $322 billion budget proposal reflects a surplus, skepticism remains among some critics who do not credit him for the financial improvements.

Read at sfist.com