California budget deficit

CALIFORNIA BUDGET IS $12 BILLION IN THE RED AMID TRUMP TARIFFS AND RISING COSTS

by Alexei Koseff

This story was originally published by CalMatters. Sign up for their newsletters.

Gov. Gavin Newsom addresses the media during a press conference unveiling his revised 2025-26 budget proposal at the Capitol Annex Swing Space in Sacramento on May 13, 2025. Photo by Fred Greaves for CalMatters

In summary

California is experiencing unexpectedly shaky economic conditions, as health care costs rise and Trump’s tariffs create ongoing uncertainty.

May 14, 2025 Gov. Gavin Newsom announced yesterday that California is facing a $12 billion budget deficit, spurred by soaring costs for social services as the state’s economy teeters from President Donald Trump’s chaotic tariffs strategy.


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BIG CUTS, NO NEW TAXES: NEWSOM'S PLAN FOR CALIFORNIA BUDGET DEFICIT

 
Photo by Fred Greaves, for CalMatters - Gov. Gavin Newsom addresses the media during a press conference unveiling his revised 2024-25 budget proposal at the Capitol Annex Swing Space in Sacramento on May 10, 2024. 
 
CalMatters is a public interest journalism venture committed to explaining how California’s state Capitol works and why it matters.
 
May 14, 2024 (Sacramento) -- Faced with ongoing weaknesses in state finances, Gov. Gavin Newsom has put forward a revised budget plan that he said aims to stabilize California in the longer term by addressing a “sizable deficit” estimated at $56 billion over the next two fiscal years.
 
Looking beyond the typical annual budget cycle, Newsom proposed on Friday more than $30 billion in ongoing and one-time spending cuts, including to education and climate objectives that have been among the governor’s own priorities, though he promised that “core programs” providing social services to needy Californians would be mostly untouched.

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YEAR IN REVIEW: CALIFORNIA DESCENDS INTO BUDGET DEFICIT

By Mikhail Zinshteyn, CalMatters

CalMatters is a public interest journalism venture committed to explaining how California’s state Capitol works and why it matters

Photo:  Gov. Gavin Newsom unveils his budget proposal for the 2023-24 fiscal year during a press briefing at the California Natural Resources Agency in Sacramento on Jan. 10, 2023. Photo by Miguel Gutierrez Jr., CalMatters

December 19, 2023 (Sacramento) - Two seemingly diametrically opposed things were both true about California’s budget in 2023.

The state had to pare down its spending as it confronted a nearly $32 billion deficit for 2023-24. Nonetheless, the final spending plan for the general fund was still the second largest on record — $308 billion in total. As recently as 2019, the budget was less than $200 billion.

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