"The current charts in Gov. Gavin Newsom's proposed 2026-27 budget reveal how spending has exploded during his governorship, far outstripping stagnant population growth, inflation and even a hefty increase in revenues. The result, according to both Newsom's Department of Finance and the Legislative Analyst Office, is a multibillion-dollar structural deficit, meaning that revenues cannot cover spending that Newsom and the Legislature have enacted."
"Both our office and the administration expect the state to face multiyear deficits, with estimates ranging from $20 billion to $35 billion annually, Legislative Analyst Gabe Petek says in his overview of the proposed budget. These deficits are concerning for three reasons. First, after four years of projected deficits and a cumulative total of $125 billion in budget problems solved so far, the state's negative fiscal situation is now chronic."
An array of budget charts shows California's revenues and spending over the last half-century. The charts indicate spending surged during Gov. Gavin Newsom's tenure, outpacing population growth, inflation and sizable revenue increases. Both the Department of Finance and the Legislative Analyst Office identify a multibillion-dollar structural deficit and project multiyear shortfalls of roughly $20–$35 billion annually. After four years of projected deficits and $125 billion in addressed budget problems, the state's fiscal gap is chronic. Persistent deficits despite economic and revenue growth point to structural, not cyclical, fiscal problems and raise sustainability concerns.
Read at www.mercurynews.com
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