![](https://californiaglobe.com/wp-content/uploads/2024/04/Screenshot-2024-01-10-at-11.46.11-AM-740x642-1.png)
CA Gov. Gavin Newsom presenting 2024-25 budget. (Photo: gov.ca.gov)
Gov. Newsom’s Office Insists Budget is ‘Balanced’ – No Deficit
Says ‘It is factually inaccurate to say that there is a budget deficit in California’
By Katy Grimes, August 30, 2024 2:55 am
Did you know that Governor Gavin Newsom’s budget is balanced? That the governor’s budget does not have a $55 million to $80 million deficit?
Neither did I until Gov. Newsom’s Deputy Director for Rapid Response Brandon Richards (He/Him) contacted the Globe again this week with a “Request for Correction – False Information Included.”
Brandon Richards (He/Him) sent this email:
Katy,
Good morning! I wanted to reach out about this article:
It is factually inaccurate to say that there is a budget deficit in California.
FACT: On June 29th, 2024 Governor Newsom signed a budget that is balanced over this current fiscal year (which began July 1) and the next fiscal year (which begins July 1, 2025 and ends June 30, 2026). Given we are now in August, that means we are well into the new fiscal year and operating under a balanced budget.
Hoping you can update the article to reflect this fact.
- Here is the release announcing this: https://www.gov.ca.gov/2024/06/29/governor-newsom-signs-2024-state-budget-supporting-fiscal-stability-and-core-programs/
And additionally, I want to point out that the state’s Department of Finance just this month said:
- Preliminary General Fund agency cash receipts were $983 million, or 10.1 percent, above the Budget Act forecast for July,
Thank you for taking quick action.
Best,
Brandon
BRANDON RICHARDS (He/Him)
Deputy Director for Rapid Response
Office of Governor Gavin Newsom
The Globe article was about Assembly Bill 1840, which would give California taxpayer dollars to illegal immigrants to help them purchase a home – up to $150,000 of taxpayer funds. The Globe spoke with and quoted Senator Brian Dahle who accurately said, “California is struggling with a multi-billion dollar deficit, and numerous housing and homelessness programs providing vital assistance to so many struggling Californians face budget cuts. AB 1840 would short-change veterans even more.”
Senator Dahle is clearly on solid ground, a Capitol staffer told the Globe. Sen. Dahle would know since he serves on the budget committee. The state budget may be declared balanced – on paper – by the Governor’s appointees at the Department of Finance, but they play that game every year. The reality is that Gov. Newsom’s Administration consistently underestimates short and long term costs and debts – including the $1.5+ Trillion unfunded public employee pension and health obligations, the Unemployment Insurance loan repayments, and the more than $300 billion High Speed Rail estimate former Senate Transportation Committee Chair Mark DeSaulnier (D) provided – just a few examples.
And we can’t leave out the Newsom administration’s often over-estimates of expected revenues.
“Thanks to careful stewardship of the budget over the past few years, we’re able to meet this moment while protecting our progress on housing, homelessness, education, health care and other priorities that matter deeply to Californians. I thank the Legislature for their partnership in delivering this sound and balanced plan,” Gov. Gavin Newsom said June 29th while dislocating his shoulder while patting himself on the back.
As the budget process was wrapping up in June, Senate Republicans issued their own statement and analysis:
…legislative Democrats passed a budget package that is not balanced, not sustainable, and not representative of the needs of everyday Californians.
The budget, crafted last week during closed-door meetings with the governor and a select few Democrat legislators, continues their fiscal mismanagement of taxpayer dollars.
“This budget package is nominally balanced but not sustainable. It fails to reign in the past decade of irresponsible growth in government spending,” said Senator Roger Niello (R-Fair Oaks) who serves as vice-chair of the Senate Committee on Budget and Fiscal Review. “It relies on budget gimmicks, draws down our savings, and saddles future generations with debt.”
Senate Republicans also issued their own budget summary in July:
The newly enacted budget would spend nearly $212 billion General Fund in 2024-25, a decline of about $12 billion from the prior year. Despite the deficit, the budget would still spend $16 billion General Fund more than the level seen just two years ago in 2022-23. The three future years included in the forecast would continue that long-term growth trend in spending, which would exceed revenues throughout that timeframe and likely longer. The budget is precariously balanced through 2025-26, but only on paper while using the Governor’s more optimistic tax revenue assumptions and ignoring billions in spending that is likely to occur. The enacted spending path is on pace to create operating deficits of $14 billion in 2026-27 and $18 billion in 2027-28, even without a decline in revenue or further increase in spending (emphasis the Globe).
In addition, the borrowing of funds from future years and similarly the rolling over of costs from one year into future multiple years is questionable, a Capitol staffer told the Globe. “The Newsom Administration seems to be working on a three or more year budgeting cycle so of course there will never be a deficit in the ‘current’ fiscal year.”
Senate Republicans’ analysis continues:
Governor’s Deficit Differs from Nonpartisan [Legislative Analyst’s] Estimate and Is Likely Understated. Defining the deficit has proven unexpectedly difficult. The Governor’s January deficit estimate of $38 billion was markedly lower than the $68 billion projection offered by the nonpartisan Legislative Analyst’s Office (LAO) at that time. In February, the LAO updated its deficit estimate to $73 billion, following weaker-than-expected tax revenue receipts in December and January. The enacted budget purportedly solves a deficit of $47 billion, though the LAO estimated that the Governor’s May Revision addressed a $55 billion deficit under more typical accounting methods. In turn, the LAO updated its own deficit forecast, which indicates the new deficit total is about $62 billion.
The primary differences between the Governor’s and LAO’s estimates are that (1) the Governor assumes revenues would be $6 billion higher than the LAO, before accounting for the tax policy changes, and (2) the Governor preemptively removed some solution proposals from the deficit calculation, even though those solutions were not part of the budget “baseline.” This unusual accounting included pre-counting an eventual $6 billion education borrowing scheme. The Governor’s atypical accounting approach arguably reduces the size of the deficit artificially.
You get the picture. Whether we call these accounting gimmicks and tricks or budget obfuscation, the truth is different from what Governor Newsom and his Department of Finance claim is “balanced” or “brings stability to state finances.”
And Brandon Richards (He/Him) is full of it. Democrats seem so comfortable lying about policies and budgets, and gaslighting these days.
I hope he’s having fun because I look forward to his emails. They are entertaining.
- Gov. Newsom’s Office Insists Budget is ‘Balanced’ – No Deficit - August 30, 2024
- CA Legislature Promoting Illegal Immigrants Over California’s Taxpaying Citizens - August 29, 2024
- Gov. Newsom’s Venezuela-Like Price Control Proposal on Oil Industry - August 29, 2024
Katy, I appreciate it when you pass along the missives to your readers from Deputy Director for Rapid Response, Brandon Richards, (He/Him). A few quick comments in regard to his thoughts. Didn’t Newsom also sign a balanced budget last year and yet we find ourselves at ta place of imbalance. Doesn’t Mr. Richards know that with all of the large corporate headquarters leaving the state that revenues will be overinflated (It would be interesting to see where they project this year’s revenue to the state will come from. No matter how you slice it with inflation and high paying job losses it will be down.). Doesn’t Mr. Richards know that with every illegal that comes to California that expenses rise even without supposed assistance with purchasing a home. Budgeting 101 tells us that if costs go up and revenue goes down that you will have a shortfall no matter how you initially report it. Newsom’s days in office are numbered and the sooner we prepare for this the faster that this state will rebound.
Excellent concerns, well-stated. The comments from readers like you of this publication are, on average, 23.89% higher in IQ points than other news sources. My opinion may be biased by +/- .5%.
Jeepers, Wally, I don’t think Gavin can just wish $50 – $80 BILLION of budget deficit away, can he? Even if fancy footwork kicks the mess down the road, it’s still gonna show up in 2025, 2026, and beyond, right? Unless he has buddies who can help him disappear it, I guess. And that’s just the General Fund he is talking about; never mind all the mind-boggling amounts of money owed that are hidden away in “special” budgets that go by different names. You know, the ones we’re not supposed to pay any attention to.
But what do I know! After all, the Gov’s office (he/him) said there is NO PROBLEM and is demanding a retraction from the Globe. So everything’s just fine with the budget, right? Right?
By the way, remember the last retraction demanded of the Globe by the Gov’s office (but not granted) about the thousands of jobs lost and everything going south in CA as a result of the $20 minimum wage for fast food workers? And remember the “Pod Save America” podcast at the DNC where Gavin showed up to talk to his podcast buddies and bitterly blurted out the truth about Kamala’s anointing? Remember his bitter — but truthful —- sarcasm about how it came to be, which was not exactly according to Hoyle?
Well, apparently it was during that same podcast that his “disagreement” with the Globe about the disaster of the $20 minimum wage allowed him (he thought) to pridefully say that he, Gavin, raised the minimum wage to $20 and, no problem, new jobs were created because of it!
Just. Amazing. And not in a good way.
Below is the link to the DNC “Pod Save America” Gavin Newsom appearance and his “$20 minimum wage creating jobs!” brag.
Gavin shows up at the 31:48 marker:
“Pod Save America – Newsom – DNC”
https://www.youtube.com/watch?v=C46X9yMsUso
We used to have a local business here in Grass Valley that went by the name of ‘Rapid Response’. Their specialty was pumping septic tanks.
Coincidence? I think not.
Ha! Good humor and truth can ride together after all!
Ha! Apropos Ted!
Brandon Richards (He/Him) sounds like he’s hopelessly brainwashed? He’s LinkedIn profile indicates that he’s originally from Seattle and that he has been involved in leftist Democrat politics his entire working career since graduating from college with a BA degree in politics from Willamette University in Oregon. He posted a photo of himself posing in front of a Kamala sign at the DNC convention with the caption of “Let’s make go make history!” Poor thing looks looks like he’s bloated from ingesting too much soy?
(https://www.linkedin.com/feed/update/urn:li:activity:7233677650165178368/?updateEntityUrn=urn%3Ali%3Afs_updateV2%3A%28urn%3Ali%3Aactivity%3A7233677650165178368%2CFEED_DETAIL%2CEMPTY%2CDEFAULT%2Cfalse%29)
TJ, I wonder if while he was at the DNC he took one for the team and got a free vasectomy?
Considering we’re discussing a radical far-left Democrat, he/him may have been born a she/her and maybe instead visited the abortion trailer that was set up outside the DNC convention?
My, my. Such brute masculine strength in those closed fists and clenched teeth (He/Him)……..yawn.
No Raymond – that’s psychopathic, narcissistic RAGE exemplified by our Boy Governor, Gavin “Greaseball” Newsom…
An appropriate meme title for this image might be :
“And this is what I’d like to do to the necks of the DNC officials who passed ME over for HER for President”
Any time a politician (especially a Democrat) uses the trite phrase “meet(s) this moment”, you KNOW what follows is 100% a LIE….
It’s a TELL….
Voodoo accounting anyone. The Democrats continue to believe that they are experts on budgets and what foods should be banned and economics 101.