Just a few years ago California had a record budget surplus but is now facing a projected $25 Billion budget deficit for next year according to fiscal analysts in the Legislature.

As tax revenues decline in California, a nonpartisan agency recommended to Sacramento that lawmakers reduce spending and possibly cut already approved funding in order to avoid the budget shortfall.

Democratic Gov. Gavin Newsom is faced with a new set of challenges after seeing record tax revenues because of a booming stock market and tech sector, but as the economy slows and tech is hit with round after round of layoffs, the money is drying up.

This fiscal year, tax revenues have consistently decreased month by month as we see layoffs in California based tech companies like Lyft, Meta, and Twitter.

Democrats in California have deflected claims that California is in a budget crunch, saying the state has large reserves and will not cut budgeted spending programs.

In a recent statement, Senate President pro Tempore Toni G. Atkins (D-San Diego) said “we are confident that we can protect our progress and craft a state budget without ongoing cuts to schools and other core programs or taxing middle class families.”

California has spent a fortune on environmental projects and initaitives but during an economic slowdown, historically these items are the first to be cut from the budget.  According to a senior policy adviser for environmental issues, David Weiskopf, he said “relying on surplus dollars and one-time spending is great when there’s a budget surplus and that one-time budget is available, but it’s not going to be enough in terms of a strategy for how California spends its budget, if we really want to achieve our near-term or long-term climate goals.”

Republicans in California have many times demonstrated the Democrats evidence of drastic overspending and according to Assembly Budget Vice Chair Vince Fong (R-Bakersfield), its “another wake up call” which will ultimately “grow government programs without accountability.”

Fong strongly reiterated, “we must refocus on fiscal responsibility.”

Many in the media believe Gov. Gavin Newsom has aspirations to run for President of the United States and a major budget deficit will greatly hinder his chances of getting the nomination.