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'Gavin Newsom, California Face Another Budget Shortfall; $10-$20
Billion'
<https://www.breitbart.com/politics/2025/05/09/gavin-newsom-california-face-for-massive-budget-shortfall/>
'California Governor Gavin Newsom and state lawmakers are bracing for a
$10 billion budget shortfall — even before federal spending cuts
undertaken by the Trump administration and the Department of Government Efficiency (DOGE).
Newsom and the Democrats took a near-$100 billion surplus in 2022–
partly fueled by federal coronavirus funds under the Biden
administration — to a near-$50 billion deficit in 2024.
Earlier this year, the state was forced to borrow $6.2 billion to fund Medi-Cal, the state’s Medicaid program, which Newsom and his party
expanded to cover illegal aliens.
Now, according to Politico, Newsom and the Democrats are bracing for
even more deficits in the near future:
Gov. Gavin Newsom is likely staring down a $10 billion budget hole that
could deepen to $20 billion or more.
President Donald Trump’s tariff policies, a Medi-Cal shortfall and
delayed tax filings from Los Angeles-area wildfire victims are putting
the state in a worse economic situation than the California governor previously anticipated — and that’s without taking into account expected federal spending cuts.
…
In early January, the governor’s Department of Finance projected the
state would see a small surplus this year. But Newsom and legislative
leaders are now flying blind into budget crunch time, as tariffs and a
lack of tax receipts — including those from some of the wealthiest Californians — are stoking financial uncertainty.
Newsom’s performance is coming under the spotlight as he prepares for a likely presidential run in 2028'