By Tom Sheehy

On Friday, May 12, 2023, Governor Newsom released his revision to the state budget he first unveiled in January. When Governor Newsom provided his budget to the Legislature in January, it was intended to solve a $21.5 billion budget deficit. The deficit was a shock following last year when the Governor was touting a budget surplus of almost $100 billion.

The reality is that the surplus never really did show up. The state ramped spending up higher, the revenue didn't come in, and this resulted in a huge budget deficit. What has changed since January is that the revenue has declined even further.

In the May revision, Governor Newsom told us today that the budget deficit is now at least $31 billion. There are a number of budget analysts and revenue forecasters, in Sacramento and in the state, who watch the state's budget, and these experts believe that this number may actually grow considerably higher.

Read more: https://www.sheehystrategygroup.com/news/2023/5/12/governor-newsom-releases-state-budget-revision

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