California Gov. Gavin Newsom's Budget Surplus and Spending Plans
California Gov. Gavin Newsom claims state will have a modest budget surplus next year but plans to raid 'rainy day' fund and warns of potential spending cuts by President-elect Donald Trump. Newsom attributes the improvement to stock market gains by the state's wealthiest taxpayers and cuts in previous years. Despite predicting a surplus, Newsom plans to withdraw $7.1 billion from state's 'rainy day' reserves.
Key Points
- California projected to have a modest budget surplus next year
- Improvement in budget outlook thanks to stock market gains and cuts in previous years
- Newsom plans to withdraw $7.1 billion from state's 'rainy day' reserves
- Concerns about potential spending cuts by President-elect Donald Trump
Pros
- Potential budget surplus in California due to rising revenues from wealthy taxpayers
- Improvement in budget outlook attributed to stock market gains and cuts in previous years
Cons
- Plans to raid 'rainy day' fund and withdraw $7.1 billion from reserves
- Warning of potential spending cuts by President-elect Donald Trump