California Gov. Gavin Newsom (D) claimed that the state would have a modest budget surplus next year — though he still planned to raid the “rainy day” emergency fund, and warned of President-elect Donald Trump’s spending cuts.
Last year, Newsom came under intense criticism after turning what had once been a $100 billion surplus — thanks, in part, to coronavirus relief money from the Biden-Harris administration — into a nearly $50 billion deficit. Now, due to rising revenues from wealthy taxpayers, Newsom says there will be a surplus. But he warned that the surplus could be in danger from Trump’s spending cuts, fueled by Elon Musk and Vivek Ramaswamy’s efforts in the “Department of Government Efficiency” (DOGE), which plans to reduce trillions in federal waste.
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