Overview
- Governor Gavin Newsom says his revised spending plan balances the budget, but conservative outlets argue the math hides a persistent deficit.
- The proposal totals about $349 billion, which critics note is up nearly 10% from last year and more than double a decade ago.
- Writers highlight heavy reliance on stock-driven tax receipts because California taxes capital gains as regular income and depends on a small group of top earners.
- The plan includes no broad income tax cuts, and a Hoover Institution estimate warns a proposed 5% wealth tax on the November ballot could push out high earners and cut revenue by up to $24.7 billion.
- Critics say the plan leaves unfunded pensions and other long-term costs untouched, citing weak results from large past spending on homelessness and schools.