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On January 10, Governor Newsom proposed a $291.5 billion budget for the 2024-25 fiscal year, as we face a $37.9 billion budget shortfall.
The Governor sounds all the right notes about fiscal discipline and belt-tightening, but spending more than you take in is not balanced. Our California State Constitution requires a balanced budget each year.
This challenge is an opportunity for the legislature to review every aspect of spending, every program, every dollar planned to go out, to ensure they are not being wasteful with taxpayer dollars. I hope they do so.
Unfortunately, they are already pushing new taxes to try to bridge the gap, including a misguided “wealth tax” aimed at our state’s highest producers. This “taxes solve everything” mindset in the legislature, and the relentless taxes and fees that follow from it, is driving people and businesses out of the state.
California policy has frustrated residents fleeing the state by the hundreds of thousands. That’s a recipe for even more problems down the road. The legislature should look at the U-Hauls heading for the exits and understand their tax-and-spend policies hurt the state.
They have until June 15 to get it right.
Click here for more information on the proposed budget.
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