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DAN WALTERS: Gavin Newsom’s Off-the-Mark Budget Numbers Undermine His Credibility Again

  • Governor Gavin Newsom revised California's 2022-23 state budget to address a $12 billion deficit due to declining revenue and rising costs.
  • The revision resulted from overestimating permanent revenues after a 2019-20 to 2021-22 spike and underestimating Medi-Cal spending increases.
  • Newsom blamed a 'Trump slump' linked to tariffs slowing the economy and unexpected Medi-Cal coverage expansion for the budget shortfall.
  • The revised budget was $14 billion higher than the original, while the total forecast error over four years reached negative $165.1 billion.
  • The budget gap contributes to a structural deficit estimated between $10 billion and $30 billion annually, with the Legislative Analyst's Office predicting it may reach $42 billion by 2028-29.
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Bias Distribution

  • 38% of the sources lean Left, 38% of the sources are Center
38% Center
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GV Wire broke the news in on Tuesday, May 20, 2025.
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