Newsom’s budget assumes continued stability at the very top of California’s tax base. Reality check: proposals like the SEIU wealth tax are already prompting income, investments, and jobs to leave the state.

Learn more:https://www.sheehystrategygroup.com/news/2026/1/19/tom-sheehy-breaks-down-newsom-budget-with-assemblyman-josh-hoover

#cabudget #cagov #caleg

Since I recorded a Point of Order podcast with Assemblyman Josh Hoover in early January, recent state General Fund revenue updates from the Legislative Analyst’s Office have understandably reignited that discussion. The non-partisan LAO now estimates that near-term General Fund revenues could be roughly $5 billion higher across the current budget window than projected in the governor’s January budget.

And the January budget the Governor submitted to the Legislature had what most fiscal analysts and experts, including me, considered a very rosy revenue forecast. So these current revenue updates showing stronger revenues that the Governir projected just one month ago is meaningful news — and it is also a reminder of how quickly California’s revenue picture can change.

www.sheehystrategygroup.com

Despite Governor Gavin Newsom and the California Legislature declaring, during this year’s May Revision, that the state was suffering from a “Trump Slump” — supposedly causing a significant revenue loss — President Donald Trumphad nothing to do with what state officials themselves have described as a structural deficit, meaning current-lawspending exceeds current-law revenues.