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OPINION (CALIFORNIA GLOBE) – Did you know that Governor Gavin Newsom’s budget is balanced? That the governor’s budget does not have a $55 million to $80 million deficit?

Neither did I until Gov. Newsom’s Deputy Director for Rapid Response Brandon Richards (He/Him) contacted the Globe again this week  with a “Request for Correction – False Information Included.”

Brandon Richards (He/Him) sent this email:

Katy,

Good morning! I wanted to reach out about this article:

It is factually inaccurate to say that there is a budget deficit in California.

FACT: On June 29^th, 2024 Governor Newsom signed a budget that is balanced over this current fiscal year (which began July 1) and the next fiscal year (which begins July 1, 2025 and ends June 30, 2026). Given we are now in August, that means we are well into the new fiscal year and operating under a balanced budget.

Hoping you can update the article to reflect this fact.

• Here is the release announcing this: https://www.gov.ca.gov/2024/06/29/governor-newsom-signs-2024-state-budget-supporting-fiscal-stability-and-core-programs/

And additionally, I want to point out that the state’s Department of Finance just this month said:

• Preliminary General Fund agency cash receipts were $983 million, or 10.1 percent, above the Budget Act forecast for July,

Thank you for taking quick action.

Best,

Brandon

BRANDON RICHARDS (He/Him)

Deputy Director for Rapid Response

Office of Governor Gavin Newsom

The Globe article was about Assembly Bill 1840, which would give California taxpayer dollars to illegal immigrants to help them purchase a home – up to $150,000 of taxpayer funds. The Globe spoke with and quoted Senator Brian Dahle who accurately said, “California is struggling with a multi-billion dollar deficit, and numerous housing and homelessness programs providing vital assistance to so many struggling Californians face budget cuts. AB 1840 would short-change veterans even more.”

Senator Dahle is clearly on solid ground, a Capitol staffer told the Globe. Sen. Dahle would know since he serves on the budget committee. The state budget may be declared balanced – on paper – by the Governor’s appointees at the Department of Finance, but they play that game every year. The reality is that Gov. Newsom’s Administration consistently underestimates short and long term costs and debts – including the $1.5+ Trillion unfunded public employee pension and health obligations, the Unemployment Insurance loan repayments, and the more than $300 billion High Speed Rail estimate former Senate Transportation Committee Chair Mark DeSaulnier (D) provided – just a few examples.

And we can’t leave out the Newsom administration’s often over-estimates of expected revenues.

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