Newsom has not officially declared it yet. He is definitely campaigning for Presidency. As a resident of the State he is the Governor. Newsom is a dynasty candidate. The kind that gets an automatic nomination. As his political career demonstrates. Charismatic and elegant speaker, he is very polished.
To get past most of the misdirected politics. Chat GPT shows how Newsom screwed up California financially. You'll hear his speeches and blame game. Truth is something different.
QuoteDisplay More🧾 What Really Caused California's Massive Budget Deficit (2025)
📉 1. Overreliance on Volatile Revenue (Capital Gains & High Earners)
Nearly 50% of California’s personal income tax revenue comes from the top 1% of earners, mainly through capital gains.
When the stock market and tech sector slumped in 2022–2023, revenues collapsed.
The budget was built on the assumption of continued boom times — a huge mistake.
💸 2. Spending Commitments Outpaced Revenue Growth
Between 2020–2023, California expanded spending dramatically:
Universal TK (Transitional Kindergarten)
Medi-Cal expansion to undocumented adults
$17+ billion in homelessness and housing efforts
Green energy initiatives and climate subsidies
These were politically popular but not funded with sustainable revenue streams.
🧮 3. Budget Gimmicks, Not Structural Fixes
To “balance” the 2025–26 budget, Newsom:
Delayed payments to school districts
Shifted expenses to future years
Borrowed from special funds
The Legislative Analyst’s Office (LAO) has warned these are temporary gimmicks — not real solutions.
⚠️ 4. Warnings Ignored
The LAO repeatedly warned Sacramento that deficits were looming — starting as early as late 2022.
Despite this, the governor and legislature continued to expand programs and refused to cut or reform.
When the deficit hit hard in 2024, the administration was politically unprepared — and started blaming outside forces instead of owning the mismanagement.
❌ The “Trump Blame” Narrative Is a Deflection
Tariffs and tax policies under Trump were years ago and already baked into economic conditions.
The Biden administration kept many of those policies — so Newsom blaming Trump now is disingenuous.
It’s a political smokescreen to distract from California’s own budget recklessness.
🧭 Final Assessment
Cause Who’s Responsible? Reality Revenue collapse from capital gains State policy structure Predictable and warned about Massive program expansions Newsom + Legislature Popular but not sustainably funded Budget gimmicks (deferrals, borrowing) Newsom administration Kicks the can down the road “Trump slump” excuse Newsom messaging strategy Politically convenient, but not factually valid
