Politics

The Truth About California’s Budget Surplus

Written by Alex Hays

California’s budget was presented on January 10th of 2022, with the importance of the May Revisions data collection and debate information. The May revisions document’s nature being political; California Governor Gavin Newsom is allowed to play around with the numbers on the documents. 

With California’s state budget just being stated in January 2022; the budget was said to be in surplus of over $100 billion. Added more interesting things to the last 4 years of Governor Gavin Newsom 12 year governing term of California, speaking out via the Associated Press announcing the “surplus” of $100 billion. In Newsom’s words “ No other state in American history has ever experienced a surplus as large as this” 

However, reading critically into California’s most recent balance sheet shows a strong fact that the state has a huge unconstrained net deficit of $208 Billion with no actual surplus.  California’s liabilities come from employees pensions, and lifetime medical benefits causing debts up to $11 billion in interest per year. This debt should be dealt with bigger payments so it doesn’t cost the common taxpayers any more money. He’s leaving the governing sphere without leaving a dent on our current deficit.

Our state’s governor is also being underhanded and dishonest with his usage of the stock market to make his fortune. He has not also been too grateful with his absolutely great fortune to pay his bills. Instead of the later he does the former; putting $23.3 billion into a rainy day fund. California’s growing debt is growing and this isn’t helping but it’s pouring more gasoline into the pit. Also leaving his mistakes and messes to the men and women to clean up, damning future generations with his ineptitude and incompetence with his ways to reduce taxes. 

If Gavin Newsom actually cared for the future generation and Californians. He would deposit the funds into a restricted state treasurer’s bank account. We can thank his insolence for nothing in years ahead. Gavin Newsom’s actions in the many revisions for California’s failures to pay taxes and not use the budget to further help our debt crisis.

Photo Cred: Alberto E. Rodriguez/Getty Images