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Gov Newsom Declares Budget Emergency as He Signs Record $321B Budget

by Kenneth Schrupp, The Center Square
July 1, 2025
in Curated, News
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(Just The News)—California Gov. Gavin Newsom signed a budget emergency proclamation, authorizing the state to access $17.6 billion in its budget stabilization account as he signed a record $321 billion budget.

In the 2018-2019 fiscal year, the last year before Newsom’s governorship, the state budget was $201 billion, meaning the state’s budget has grown 60% over the last five years while the population has slightly declined.

Advisor Bullion Numismatics

“Largely due to the federal government’s sweeping tariff policy, the 2025 May Revision forecast of the California economy projects a period of below-trend growth and rising unemployment (‘growth recession’) and a General Fund revenue forecast downgrade by $5.2 billion in fiscal years 2023-24 through 2025-26,” wrote the governor.

While Newsom’s order blames the Trump administration for the state’s economic slowdown, federal data shows California lost a net 80,300 jobs in 2024, and had shed 173,000 private-sector jobs between January 2023 and December 2024, suggesting the state’s economic woes predated the Trump administration.

38.2% of Californians are so low-income they qualify for Medi-Cal, which has a monthly income threshold of $1,801, or $21,612, or about half of what one would make working at a fast-food restaurant full-time.

In March, nearly half of all new jobs were from the state’s In Home Supportive Services program, a welfare program by which disabled or elderly Medi-Cal beneficiaries use taxpayer money to employ household members for up to 70 hours a week for household tasks, including a boost for overtime pay.

Nearly three quarters of a million Californians are now classified as employed IHSS providers.

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Tags: CaliforniaGavin NewsomJust The NewsLedeThe Center SquareTop Story

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