Gavin’s Newsom’s awful debt legacy laid bare — as California loses track of its state payroll
California faces a structural budget deficit of $20 to $30 billion as Governor Gavin Newsom's administration struggles to account for state payroll spending, according to a report by the Legislative Analyst’s Office. Despite a $100 billion increase in revenue since 2019, spending has outpaced income due to expanded programs and rising operational costs. The findings have sparked criticism from lawmakers and could impact Newsom’s expected 2028 presidential run.
- ▪The Legislative Analyst’s Office reports California faces annual budget shortfalls of $20 to $30 billion despite a $100 billion revenue increase since 2019.
- ▪State officials cannot reliably track how much is spent on employee compensation or how many workers are paid with general fund dollars.
- ▪About 70% of increased spending since 2019 went toward maintaining existing services, while 30% funded new expansions like university aid and health care for undocumented immigrants.
- ▪Eliminating all discretionary spending since 2019 would save $15 billion, less than half the projected annual deficit.
- ▪Political analysts suggest the report could increase scrutiny on Gavin Newsom ahead of a potential 2028 presidential campaign.
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Politics Gavin’s Newsom’s awful debt legacy laid bare — as California loses track of its state payroll By Josh Koehn Published April 29, 2026, 8:56 p.m. ET Gavin Newsom is set to leave California a shocking legacy of a structural budget deficits of between $20 and $30 billion – as his administration admits they have no idea how much it spends on state worker’s salaries. And the report by the state’s Legislative Analyst’s Office is so damning, it may even change the math on Newsom’s expected run for president, with a prominent political analyst Thad Kousser warning: “He will face immense scrutiny as we head toward a potential presidential run.” 4 Gov. Gavin Newsom will likely be leaving California with a budget mess when leaving office after this year.
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