California Governor Gavin Newsom has signed a budget aimed at closing an estimated $46.8 billion deficit, a move that has drawn criticism from Republican lawmakers who claim they were left out of the negotiations. The budget, which passed on Wednesday after an agreement between Newsom and legislative leaders, includes $16 billion in spending cuts and temporary tax increases on certain businesses. Newsom has praised the budget as “responsible” and said it prepares “for the future while investing in foundational programs that benefit millions of Californians every day.”
However, Republican lawmakers have voiced strong opposition to the budget, arguing that it was developed without their input and fails to adequately address the state’s financial challenges. Republican Senator Roger Niello of Fair Oaks, Vice-Chair of the Senate Committee on Budget and Fiscal Review, derided the budget as “the majority party’s budget,” stating that he only learned of its details through an X post. He contends that the budget ignores the priorities of eight million California residents represented by Republican lawmakers. Niello further criticizes the budget as “nominally balanced but not sustainable,” arguing that it relies on budget gimmicks, depletes savings, and saddles future generations with debt.
Senate Minority Leader Brian Jones of San Diego echoes these sentiments, stating that California residents represented by Republicans in the legislature have been denied a voice in the budget process. He accuses Democratic colleagues of playing “shadow games with accounting” rather than “being responsible with California’s checkbook.” Jones further claims that the budget prioritizes unneeded social projects and pet projects over essential services, describing it as “unfathomable” but “real.”
The $46.8 billion deficit reflects a significant increase from the $32 billion deficit in 2023 and is projected to continue growing in the future. This stark contrast is notable considering that just two years ago, Newsom and Democratic lawmakers were celebrating surplus funds exceeding $100 billion, attributed to federal COVID-19 aid and a progressive tax code that generated substantial revenue from the state’s wealthiest residents. However, these revenue spikes have not been sustained due to inflation’s impact on the economy, contributing to rising unemployment and a slowdown in the tech industry, a major driver of the state’s growth.
The Newsom administration is now facing criticism for miscalculating California’s financial standing last year after delaying the tax filing deadline by seven months. The budget includes an agreement between Newsom and lawmakers to attempt to amend the state constitution to enable California to allocate more funds to reserves for future shortfalls. While Fox News Digital has reached out to Newsom’s office for comment, no response has been received. The Associated Press contributed to this report. Bradford Betz is a Fox News Digital breaking reporter covering crime, political issues, and much more.
