(NationalUSNews.com) — California faces a daunting budget disaster due to a record-breaking deficit reached under Governor Gavin Newsom’s leadership. Newsom appeared in a televised debate against Florida Governor Ron DeSantis to discuss the successes of California but ultimately failed to convince viewers after DeSantis highlighted the growing fiscal crisis unfolding in Newsom’s state. Newsom is now working with the California state legislature to find a solution to the record-breaking deficit.
According to reports, Newsom will present a plan to California lawmakers in January and negotiate a possible resolution over the following months. California’s next budget year begins on July 1st, and without a solution to the state’s growing fiscal crisis, Newsom’s position as governor may be threatened. Before Newsom took office, California’s state budget featured over $100 million in surplus. During Newsom’s second term in office, California reached a record-breaking $68 billion deficit.
After taking office in 2019, Newsom used his position as governor to expand California’s state government and California’s social services systems. Newsom famously paid for guaranteed health insurance and free lunches for every public school student, costing the state billions of dollars. Despite the financial shortcomings of Newsom’s administration, the governor remains adamant that his policies are working and California is thriving under his leadership.
California’s budget crisis comes as Newsom regularly makes media appearances in what some lawmakers claim is a “shadow campaign” for the Democratic Party’s presidential nomination. According to some of Newsom’s critics, including Senator John Fetterman, the governor is attempting to bolster his presence in the mainstream media to gain support for a potential presidential bid. Newsom denies involvement in a shadow campaign and regularly endorses President Biden’s presidential bid.
Labor statistics indicate the impending economic crisis in California is impacting the state immensely and causing a plethora of issues for the state’s residents. One report shows that the number of unemployed Californians has increased by 200,000 since 2022. The increase in unemployment caused California’s unemployment rate to become almost one percent higher than the national average.
Despite the record-breaking deficit and the unemployment rate within California, Newsom claimed California’s economy is stronger than ever during his debate with Ron DeSantis.