Overview
- Gov. Gavin Newsom says his revised spending plan balances the books, but opinion writers argue it relies on small tweaks and leaves a long‑running deficit problem in place.
- The plan would cap enrollment of migrants in Medi‑Cal, California’s Medicaid program, at roughly 200,000 people.
- A proposed 5% wealth tax heads to the November ballot and has not passed, and Newsom opposes the measure.
- Hoover Institution estimates cited by the New York Post warn the state could lose up to $24.7 billion in net income‑tax revenue if high earners move away in response to a wealth tax.
- California’s finances depend heavily on top earners because the state taxes capital gains as regular income and has a 13.3% top rate, and critics note spending has climbed by more than $100 billion since 2019–2020.