Walters: Cracks between Newsom and frustrated lawmakers show in first budget hearings

"Gavin Newsom is officially a lame-duck governor, and his final year in office seems increasingly focused on an almost certain campaign for the White House. Meanwhile, however, he must spend at least some of his time governing California and dealing with a Legislature dominated by his fellow Democrats but increasingly less willing to cater to his whims. Newsom's relationship with legislators has always been more transactional than collaborative."

"Newsom's initial $349 billion budget for the 2026-27 fiscal year is, as administration officials acknowledge, merely a placeholder. It continues the current budget, with a few tweaks, but won't be fleshed out until May, just a month before the June 15 constitutional deadline. This year the squeeze is particularly bothersome because the Legislature's budget advisor, Gabe Petek, and Department of Finance officials are both warning that the state faces large and growing budget deficits after Newsom departs."

"The frustration was evident during last week's introductory hearings for budget committees. Legislators heard Petek advise that they deal with the forecasted deficit sooner rather than later, and discussed remedies ranging from sharp cuts in spending to sharp increases in taxes. But in the absence of specifics from Newsom, they could only speculate. Newsom has steadily opposed major tax increases,"

Gavin Newsom enters a lame-duck final year while prioritizing a near-certain White House campaign but still must govern California. The Legislature remains Democratic-dominated yet increasingly resistant to accommodating his agenda. Newsom has used the budget process to push major policy changes with limited scrutiny, prompting growing public annoyance among legislators. His initial $349 billion 2026-27 budget is largely a placeholder to be detailed in May, close to the June 15 deadline. State budget advisers warn of large, growing deficits after his departure, driven in part by earlier revenue projection errors and his opposition to major tax increases. Legislators are weighing sharp spending cuts and potential tax options amid uncertainty.

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