Senator Tony Strickland (R-Huntington Beach) has released the following statement in reaction to Governor Newsom’s 2026-27 budget proposal, as delivered by his finance director, Joe Stephenshaw:
“Governor Newsom entered office with a nearly $15 billion budget surplus. At one point, his administration claimed discretionary funds of up to $100 billion. Today, California faces a projected $18 billion budget shortfall, according to the nonpartisan Legislative Analyst’s office, and under his failed leadership, a growing list of problems for the next governor.
“California families have to balance their budgets and make tough choices. The state government should be held to the same standard, and that includes Governor Newsom, who must stop spending more than California takes in.
“California does not have a revenue problem; it has a wasteful spending problem. Even with increased revenues from the AI sector, it is reckless to rely on volatile growth as a long-term solution.
“This marks the fourth consecutive year of budget deficits. Structural imbalances could push the gap to $35 billion annually by 2027–28, driven by rising program costs and slower revenue growth, as Californians are leaving the state due to its high cost of living. Ignoring these warning signs will only make the problem worse.”
Sources:
Legislative Analyst’s Office: The 2026-27 Budget California's Fiscal Outlook
Dan Walters: California sees revenue uptick, but not enough to erase its chronic budget deficit
Dan Walters: Three years later, surplus spending casts a shadow over Newsom’s new state budget
SFGate: California had the most out-migration of any state, according to new report
- CalMatters: About that giant, surplus-plus budget surplus