May Revise sets up California for painful spending choices and tax increases


Giving credit where it is due, Gov. Newsom’s “May Revise” budget proposal recognizes the seriousness of the situation. Hproposes real cuts, opposes tax increases, and suggests some efficiency improvements – which are all positive steps.

Unfortunately, the proposal still relies on too many budget gimmicks and fund shifts. The Newsom plan also underestimates the severity of the current budget shortfall that must be addressed. Making matters worse, growing economic headwinds, including the tech industry laying off over 81,000 people and California’s subpar personal income growthraises concerns that the deficit will continue to widen throughout the year.

The focus on budget responsibility obscures some troubling trends. For example, while focusing on administrative efficiencies, the Governor fails to demand efficiencies in the programs that can yield substantial long-term budgetary savings.

Click to read the full article in the Orange County Register. 

Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.

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