The California Legislature has only a few days to approve a state budget 2025-26 to comply with the June 15 deadline for the State Constitution.
The deadline will bet with, if for any other reason that legislators, at least theoretically, have their suspended wages if they lost it.
However, the budget that Andact can have only a similar passenger with what possibly, perhaps many months later, will become a complete fiscal plan.
The reviewed budget than the government. Gavin Newsom proposed a month of projects that the general tax revenues for the year would be approximately $ 20 billion that have been proposed, and that is after counting the billions of dollars in reductions for the requested attention and the legislature to swallow.
Newsom would go back the expansions that he and legislators happily promulgated when they believed that the State had a great surplus. Newsom now says that the cuts are necessary to balance Althegh’s budget that it would still have, for its own numbers, the $ 20 billion gap between revenues and the exit it would cover with temporary solutions, dirty tingling and tricks. He plans to take advantage of the $ 7.1 billion of the budget rain fund, bringing the shortage to $ 12 billion.
So that’s the dilemma. Newsom and legislators are having a very strong pressure of the defenders of endangered services, such as Medi-Cal coverage for undocumented immigrants, to go back. However, the restoration of the issue in the budget would cost around $ 10 billion, thus increasing the chronic state deficit and requiring reductions in other categories of expenses or more patches in the short term.
The large amounts of money from the dilemma, the uncertainty about the effects of the tariffs of President Donald Trump and propose federal reductions of expenses, and ideological divisions among the Democrats of the Capitol on what to do, all aim to comply with the Constitution and the budget of the Dad line, while the indefinite pleadería.
Underlining the situation is an acknowledge by the administration, backed up by the legislature’s Budget Analyst, Gabe Petek, that 20 billion to $ 20 billion to $ 20 billion to $ 20 billion to $ 20 billion to $ 20 billion to $ 20 billion to $ 20 billion to $ 20 billion at $ 20 billion at $ 20 billion.
Petek’s office has calculated that since Newsom became governor in 2019, the expense has increased by an average of 9% per year, while revenues have increased by only 6% per year, and if the gap continues, the loans of the state.
The conclusion of all these numbers is that it does not matter what they do with this budget, it will continue to filter red ink until there is a day of accounts.
There is another way to get out of the enigma if the politicians of the Capitol because they take it, increase taxes.
Labor unions, medical care defenders and social programs and the most leftist members of the legislature want to do so. Several tax schemes are floating around the Capitol, suggesting mainly collecting taxes on corporations to avoid directly taxing voters.
In its recent review of the state’s budgetary situation, Petek’s office raises the increase in alternative taxes, saying that “it is finally a difficult judgment call for the legislature” with political consequences, as well as financial.
Newsom-Who is clearly looking at what he will do after his governorate ends 19 months, therefore, he has repeatedly rejected tax increases, preferring to spend each year with short-term solutions.
Moreoover, increasing corporate taxes would amplify the image of the State as an extraordinarily difficult and sale.
Do the Democrats, who have complete control over state finances, will bite the bullet by going back or increase taxes, or they, like former governor Arnold Schwarzenegger liked to say, simply “kicking the can on the road?”