California Assembly Republican Caucus
Governor Newsom’s latest budget doubles down on the same failed policies that have plagued California for years, leaving families to face record homelessness, skyrocketing energy and housing costs, and one of the highest unemployment rates in the nation. Despite his upbeat rhetoric, this budget is balanced only by raiding $7.1 billion from the state’s rainy day fund, a reckless move that ignores looming fiscal challenges.
The nonpartisan Legislative Analyst’s Office projects deficits of $20 billion to $30 billion annually for three consecutive years starting in 2026. Meanwhile, Newsom’s plan grows general fund spending by $17.4 billion—nearly $10 billion more than the budget passed just six months ago. This pattern of unchecked spending has resulted in a 90% increase in expenditures during his tenure, yet Californians are struggling more than ever.
The governor continues to make splashy announcements and spend lavishly, but the results speak for themselves: businesses face higher taxes due to his administration’s mishandling of unemployment insurance debt, while his six years of record spending have failed to deliver meaningful progress on the issues that matter most. His promises of efficiency—such as eliminating 10,000 vacant state jobs and saving $4.9 billion—have fallen flat, with only 6,500 positions cut and $1.4 billion in promised savings left unrealized.
Public safety is yet another glaring omission. Despite voter approval of Prop. 36 to create safer streets, Newsom has allocated no new funding for public safety or treatment programs for drug offenders—programs he previously criticized for lacking funding. Is the governor once again undermining the will of the voters?
Homelessness remains at record levels, yet funding for the Clean California Program has been slashed compared to previous years. Californians deserve answers: will this administration allow our streets to deteriorate even further?
California’s families, workers, and businesses deserve a budget that prioritizes fiscal responsibility and delivers tangible results. This budget is more of the same from a governor who talks a big game but continues to fall short where it matters most.