It should not shock anyone that the FY2024-25 budget was short on fiscal discipline and long on budget gimmicks and fund shifts.
Now that this year's budget process is coming to an end, it is imperative to step back and gain some budgetary perspective.
The governor seems to think "This agreement sets the state on a path for long-term fiscal stability - addressing the current shortfall and strengthening budget resilience down the road." Gavin Newsom's optimism is unwarranted given the economic realities and state of the budget.
Even if the governor does not have to close another large budget gap for the FY2025-26 budget, don't be fooled, the budget is barreling toward crisis.
This impending crisis may lack the recent drama that the balanced budget requirement periodically imposes.
The even more pressing problem is that California's current budget is unaffordable relative to this historical level of spending.
California budget deficit California crisis California spending Featured Gavin Newsom budget.
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