California's Chronic Structural Deficit

United States — California is facing a chronic structural deficit, with estimates ranging from $20 billion to $35 billion annually, and a cumulative $125 billion in budget problems. This situation is primarily attributed to an explosion in spending during Gavin Newsom's governorship, which has far outstripped revenue growth, stagnant population growth, and inflation. Revenues increased by 60% while total spending jumped 72% from $203 billion to $349 billion in the budgets Gavin Newsom has signed or proposed since 2019-20. A significant factor contributing to this deficit was a massive error in revenue projections by Gavin Newsom's budget staff in 2022, which overestimated revenues by $165 billion over four years and fueled an immediate spending increase based on a claimed $97.5 billion surplus that proved to be an illusion. The United States — California Legislative Analyst s Office and the United States — California Department of Finance both confirm the structural nature of the problem, raising concerns about United States — California's long-term fiscal health.