Gov. Gavin Newsom straddled the line of cheerleader and combatant in his delivering of his revised California budget Thursday, boasting about better-than-expected revenue while leveling broadsides against President Trump’s record.
Newsom accused the president of waging a war on innovation and affordability and tanking the national economy while California continues to “dominate” the developed world.
Standing beside slidesmocking Trump’s tariffs, economic record and even “California derangement syndrome,” Newsom unveiled a revised $349.9 billion spending plan fueled by stronger-than-expected tax revenues and California’s booming AI-driven economy.
“We have a president who doesn’t give a damn about the economy,” Newsom said.
The revised budget proposal balances the budget not only for the upcoming fiscal year, but through 2027-28, while reducing projected long-term operating deficits by more than half, according to the administration.
The revised plan comes after California collected $16.5 billion more in “Big Three” tax revenues — personal income, corporate and sales taxes — than projected in January over the state’s three-year budget window.
Personal income taxes alone accounted for $13.6 billion of the increase, largely driven by capital gains tied to the stock market and AI.
The May revision estimates general fund spending at $246.6 billion in 2026-27, about $1.8 billion lower than proposed in January.
Despite the improved revenue picture, Newsom warnedCalifornia’s tax systemremains vulnerable to sharp swings in capital gains collections and market downturns.
“The issue of revenue volatility has to be addressed,” Newsom said.
Source: California Post – Breaking California News, Photos & Videos
