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Newsom Is Falling Down A Rabbit Hole…

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(FreedomWire.org) – California is projected to have a deficit after holding onto a budget surplus for the past several years.

The state is expected to have a $25 billion deficit in the next fiscal year, according to the state legislature’s nonpartisan fiscal experts.

The Legislative Analyst’s Office released its report on Wednesday, emphasizing the upcoming $25 billion deficit, which they say is mostly due to “lower revenue estimates.”

The state’s last budget was $308 billion with a $97 billion surplus, and the year prior to that, the budget was $263 billion with a $76 billion surplus. The state currently has $37.2 billion of reserves.

Newsom had to know that the surplus was shrinking when he decided to give handouts right before midterms. It appears he was just buying votes.

It has been noted the tough economic environment is harming revenues. Also noted was that their revenue estimates “represent the weakest performance the state has experienced since the Great Recession.”

“It’s not insignificant, but it’s also manageable,” Legislative Analyst Gabriel Petek said. “We don’t think of this as a budget crisis.”

Democratic Governor of California Gavin Newsom’s administration reportedly said the deficit was “realistic and reasonable.”

H.D. Palmer, a spokesperson for the state Department of Finance, called the estimated shortfall a “realistic and reasonable assessment of the work that lies ahead.” He said the Newsom administration anticipated the economic slowdown and planned accordingly, putting California in a good position to weather the impact.

“This is precisely why the governor made clear that the state had to be smart with the surplus — which we’ve done,” Palmer said. “Using it to build up our budget reserves, pay down debt, and target the balance on one-time spending — like the $9.5 billion in inflation relief payments that continue to be delivered to millions of Californians — and not building up higher ongoing spending that can’t be sustained.”

The governor and Legislature may still face difficult decisions to close the budget gap, especially if economic conditions worsen, he said. All of that is being considered as Newsom prepares his budget proposal, which will probably be released in January.

With a recession that has been projected, it could create an even bigger problem for California.

If that happens, current projections have the state losing anywhere from $30 to $50 billion, so you can see the rabbit hole that Newsom is about to fall into here.

The timing of this could not be worse for Newsom, who has had whispers of possibly running for president if Joe does not run.

Samantha is a proud patriot living in central Pennsylvania. She is a mother of three, a lifelong Christian, and the wife of a soldier who is currently defending our country from evil.

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