The Governor’s Proposed 2026-27 Budget Overspends, Over-Allocates and Fails Californians

The Governor has released his last budget for California with a plan to spend $348.9 Billion with a forecast shortfall of only $2.9 billion.  How did we get to this low number when the original forecast by the non-partisan Legislative Analyst’s Office last fall was $18 billion?  Crafty use of smoke and mirrors including tactics that California government frequently uses.

Newsom plans to tap into reserves that were set aside for emergency situations, defer payments by not paying bills when they are due, and shift costs “off the books”.  It appears he has taken the stance that California businesses are so successful that we just can’t lose.  Bragging that California is the 5th largest world economy, he has no interest in constraining government overspending.

General Fund Expenses include:

$88.557 billion or 35.7% for K-12 Education.  Much of the spending is mandated by proposition 98 passed by voters.  Results show that only 47.1% of our kids are able to read at grade level, and their math scores are even worse.  We should ask where is all that money going?  We know it is not going to teachers.

$25.974 billion or 10.5% goes to Higher Education.  These are the colleges where admission is difficult for the well qualified student who may not meet DEI criteria, with highly paid professors who are indoctrinating them with questionable information.

So, total education dollars are $114.531 billion or 46.2% of the overall budget.  Results do not comport with this large investment. 

$67.053 billion or 27.0% goes to Health, the huge category that provides medical services for illegal aliens growing another $2 billion, while limiting availability to eligible Californians. 

$26.616 billion or 10.7% goes to Human Services that should be temporary helping people get ahead, but are subject to lots of fraud and abuse while the truly needy continue to struggle. 

$21.240 billion or 8.5% is designated as other – the catchall where everything that does not fit the other broad categories rests.  This seems a large amount and encourages lots of legislation to spend more money.

$13.955 billion or 5.6% goes to Corrections and Rehabilitation. So many inmates been let out on our streets that we should expect this cost to decrease.  This method does increase local county costs.

$4.875 billion or 2.0% goes to Natural Resources that are abundant in our state but need a realistic approach.

Newson’s signature issue, homelessness and housing commitments has been pouring billions into encampment clearances and affordable housing is slated for a $1.5 billion rollback. His efforts do not make housing affordable for California citizens or reduce the cost to build homes in our state.

An interesting reduction of $15 billion is proposed that will affect the climate agenda, reducing electric vehicle expectations and wildfire prevention.  This reduction could help balance the books.  But this ignores funding for the costly wildfires and droughts that are constants in our state.  It appears that Newsom lacks the courage to face this reality head-on and prefers fiddling around just like a previous emperor. 

Healthcare and Medi-Cal Expansion are driving costs. MediCal enrollment is now close to 15 million Californians, including recent changes to cover illegal immigrants. This will cost the state $2 billion more this year. It is a cost shock to the system and is not sustainable, despite Newsom's and legislative Democrats' hopes.

Lastly, Newsom has proposed nothing to address the many California programs that are subject to the same massive fraud we are watching unfold in Minnesota and possibly other states. Remember, the Golden State lost more than $30 BILLION to unemployment fraud during COVID. What steps are being taken to ensure taxpayer dollars are being protected?

The Governor and lawmakers will have until June to reach a final spending plan.

The Republicans often describe the problem as too much spending, and too little belt tightening to reduce spending. Overspending is a chronic disorder in California. Fraudulent activities have been going on for so long that it has become de reguer.  At least one candidate for Governor, Steve Hilton, has been talking about this hoping to be able to give Californians relief. It’s time to DOGE California. The goal should be to control our spending, reduce our deficits and provide more efficient services to our citizens.