Governor Gavin Newsom initially warned of a projected $66 Billion 2023-2024 California State Budget Deficit for the $297 billion Budget which amounts to $20,000 for each citizen. The estimated deficit is expected to be at least $25 billion after some budget adjustments. There is an additional unknown deficit for unfunded State and Municipal liabilities such as pensions.

The basic reasons for the deficits are new programs and lower projected income tax revenue due to lower incomes. Also, California is is not growing – the state is bleeding businesses and losing hundreds of thousands of residents to other states. The 2023-2024 budget is $82 billion more than Gavin Newsom’s first budget in 2019, which was $215 billion.

Where is the California spending? According to Bloomberg, Newsom’s spending plans included:

$11.5 billion to every eligible registered vehicle owner, capped at two $400 checks per individual
$2.7 billion for emergency rental assistance
$2 billion for affordable housing production
$1.4 billion for overdue utility bills
$933 million for hospital and nursing home staff
$750 million for free public transit
$125 million to bolster access to reproductive health services.