Newsom’s Budget Houdini Act: All Smoke, Mirrors, and Wishful Thinking
California Governor Gavin Newsom has presented a revised budget claiming no deficits through 2028. However, this optimistic outlook relies heavily on volatile revenue sources, particularly from capital gains. Critics argue that the underlying issues of spending outpacing reliable revenue remain unaddressed.
- ▪Newsom's budget for fiscal year 2026-27 boasts a total state budget of $349.4 billion with no projected deficits.
- ▪The budget's optimistic projections are largely based on a temporary spike in capital gains tax revenue.
- ▪Experts warn that a downturn in the market could lead to significant revenue losses, potentially resulting in ongoing deficits.
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Home – California Politics & News – Newsom’s Budget Houdini Act: All Smoke, Mirrors, and Wishful Thinking opinion Newsom’s Budget Houdini Act: All Smoke, Mirrors, and Wishful Thinking Drew Allen • May 20, 2026 Print California Governor Gavin Newsom speaks during the The Center for American Progress (CAP) IDEAS Conference in Washington, DC on May 19, 2026. (Jim Watson/AFP) (function(){var t=document.querySelector(".wp-block-kadence-dynamichtml"),s=document.currentScript.previousElementSibling;if(t&&s){if("prepend"==="before_element")t.parentNode.insertBefore(s,t);else if("prepend"==="after_element")t.parentNode.insertBefore(s,t.nextSibling);else if("prepend"==="prepend"||"prepend"==="inside_first_child")t.insertBefore(s,t.firstChild);else t.appendChild(s);}})(); Gavin Newsom has once again…
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