NEWSOM blame Trump’s rates for the worsening CA budget

While the governor Gavin Newo introduced a Revised budget 2025-26 On Wednesday, he blamed Trump’s Fluch of President Donald Trump’s tariffs and other economic moves As a major factor in increasing the state deficit by another $ 12 billion.

“California has settled in an attack,” Newpom told reporters at a budget briefing, declaring that Trump’s actions have created a “climate of deep uncertainty.”

Thehe Proposed original Newsom budget In January, there was already at least $ 11 billion in the difference between income and exceeding, which he filled with reserves, loans, deposits, raids of special funds and accounting maneuvers.

State tax revenue is to be expected in the beginning of the year, but after Trump imposed tariffs for imported goods, saying that this would encourage domestic production, Newsom and its budget staff revised the income rates, especially income taxes.

“The imposition of Washington tariffs has led to a decrease in both economic and revenue forecasts,” said the revised budget. “In combination with increased growth growth above the governor’s budget (January)-most in the Medi-Cal state, now it has to close approximately a shortage of $ 12 billion to balance the budget and provide a prudent discretion reserve. programs. “

The audited budget maintains total costs at almost the same version level in January, $ 322 billion, but the total cost of funds by $ 2 billion to $ 226 billion is eliminated.

As noted, the state has also experienced a Multi-Depirer Snipping on Medi-Cal CostsThe State Health System for the poor, which contributed to an estimate of a deficit of $ 12 billion. NEWSOM offered a series of maneuvers to close the new deficit, mainly a reduction in Medi-Cal, including freezing adult entries and $ 100 a month premiums for Medi-Cal students.

By separating Medi-Cal as a major driver of government spending and insisting on a reduction, Newsom has been making an 180-degree political pirouette a year ago when it boasts nearly 100% medical assistance for Californians with The Californians Adding thousands of undocumented immigrants to programs rolesS

The last expansion of the chronic budget difference in California, What fiscal experts consider to be a “structural deficit“It is practically sure that the Newsom manager will end 19 months, therefore with the state’s finances still unbalanced. The governor’s own budget staff and the non -party adviser to the legislature of the legislature, who has forecast many billion debates in the future.

The revised budget projects with which California’s economy faces a slow future, with a slight overall growth of jobs and unemployment, which are now among the highest nationPractically unchanged. Accordingly, government revenue is expected to increase slowly.

Forecasts do not suggest that The national economy will go to recessionAs some economists predict due to Trump’s tariffs. If it happens, it would suppress revenue even more.

The budget also does not evaluate the potential reductions in federal aid for countries, especially in healthcare that Trump and Republicans in Congress have proposed. Medi-Cal and other social and medical programs are targets in both Washington and Sacramento, as they are among the largest items both in the federal and state budget.

So Increasing the pressure to increase taxes To balance the books of the state.

NEWSOM resists these calls, but if the forecast perennial deficits become a reality, the tax increase drum will increase more strongly. He may and will probably continue to deviate from tax increases, but if he does, the pressure will hit his heir, any, immediately after taking office.