{"id":666,"date":"2026-05-28T10:39:18","date_gmt":"2026-05-28T10:39:18","guid":{"rendered":"https:\/\/nextcitydigest.com\/?p=666"},"modified":"2026-05-28T10:39:18","modified_gmt":"2026-05-28T10:39:18","slug":"walters-newsoms-unbalanced-budget-faces-strong-pushback-for-spending-cuts-will-lawmakers-back-him","status":"publish","type":"post","link":"https:\/\/nextcitydigest.com\/?p=666","title":{"rendered":"Walters: Newsom\u2019s unbalanced budget faces strong pushback for spending cuts. Will lawmakers back him?"},"content":{"rendered":"
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Gavin Newsom is trying to finish his governorship on a high note, claiming he has written \u201ca balanced budget structurally for 18 months\u201d that would give his successor some breathing room.<\/p>\n

Read more Horoscopes May 28, 2026: Carey Mulligan, a desire for change will motivate you<\/a><\/p>\n

The word \u201cstructurally\u201d is the key feature Newsom is touting because for the past four years, after he and the Legislature raised spending on an erroneously expansive revenue projection, budgets have spent a total of $125 billion more than the state\u2019s real revenues, according to the Legislature\u2019s budget analyst, Gabe Petek.<\/p>\n

It is\u00a0what budget junkies term a \u201cstructural deficit,\u201d\u00a0meaning spending commitments are more than the revenue system can cover. Newsom is now claiming that with a recent surge in revenues and some belt-tightening, his 2026-27 budget is now structurally sound.<\/p>\n

However, the numbers he presents say otherwise.<\/p>\n

His\u00a0$349.4 billion budget\u00a0projects that the state will take in $226.5 billion in general fund tax revenues during the fiscal year that begins July 1 but would spend $246.6 billion, a $20 billion gap that\u2019s somewhat smaller than those of recent years but still a structural deficit.<\/p>\n

A short-term revenue spike, some spending reductions, some borrowing and the usual mix of other \u201csolutions\u201d would cover the shortfall, but even so, the budget acknowledges that long-term deficits still loom, although perhaps smaller than previous estimates.<\/p>\n

Petek says the budget\u00a0still leaves the state \u201cill-prepared\u201d\u00a0for even a small hiccup in revenues.<\/p>\n

Newsom is obviously proud of what he has wrought, saying \u201cWe\u2019re cutting deficits but not cutting corners.\u201d However, as the June 15 constitutional deadline for passing a budget looms, he and legislators are facing widespread resistance to the budget\u2019s reductions, particularly in education and health and welfare services for the poor and disabled, and to an unwillingness to cover additional cuts in federal aid for those programs.<\/p>\n

\n<\/div>\n

Scarcely a day passes without some demonstration or other event staged by advocates to pressure the Capitol\u2019s politicians to make their programs whole. And more pressure is coming from powerful education groups because Newsom is holding back some school funds that the constitution requires to be paid.<\/p>\n

Read more Asking Eric: Why don\u2019t these people in lopsided friendships just take the hint?<\/a><\/p>\n

Last week, for example, the California School Boards Association and a coalition of school unions and other education groups staged a rally on the Capitol steps, demanding Newsom and legislators give schools their designated state aid, reminding them that it\u2019s \u201ca matter of law, not a suggestion that can be discarded when it becomes inconvenient for policymakers,\u201d as the school boards\u2019 president, Debra Schade, put it.<\/p>\n

\u201cYet, for the third consecutive year, the administration has proposed manipulating the Proposition 98 minimum funding guarantee instead of fully honoring it. Once we open the door to the idea that Proposition 98 can be manipulated whenever the state faces fiscal pressure, we fundamentally weaken the protections voters deliberately put in place for California students.\u201d<\/p>\n

Healthcare advocates are equally adamant. For example, backers of dental care for poor children released a report saying that \u201cUpwards of 1.2 million low-income California children could lose access to dental healthcare if Gov. Gavin Newsom\u2019s proposed Medi-Cal dental cuts are enacted.\u201d<\/p>\n

\n<\/div>\n

Meanwhile, supporters of Newsom\u2019s expansion of pre-kindergarten education and childcare are complaining that \u201cthe governor is cutting all childcare and pre-K programs by 2% in real spending,\u201d adding, \u201cAfter championing young children, family supports for several years, the governor\u2019s reversal is odd \u2026 in light of his presidential ambitions.\u201d<\/p>\n

The Legislature\u2019s supermajority Democrats are obviously sympathetic to the complaints flooding their offices, even to the extent of raising taxes. However, Newsom also doesn\u2019t want to leave after imposing a big increase in taxes.<\/p>\n

We\u2019ll soon learn whether legislators will anger advocates of programs they\u2019ve proudly supported to support a lame duck governor who is obviously plotting a run for the White House.<\/p>\n

Read more Harriette Cole: I just found out what happened to our savings account<\/a><\/p>\n

Dan Walters is a CalMatters columnist.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Legislature\u2019s financial analyst says state is ill-prepared for even a small disruption to revenue stream.<\/p>\n","protected":false},"author":1,"featured_media":175,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-666","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opinion"],"yoast_head":"\nWalters: Newsom\u2019s unbalanced budget faces strong pushback for spending cuts. 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