“No other state in American history has ever experienced a surplus as large as this,” Newsom said early in 2022 as he unveiled a $300-plus billion 2022-23 state budget that the Legislature eagerly adopted with a few tweaks. The astonishing surplus included an estimated $54.8 billion increase in revenues, primarily from personal income taxes, far exceeding Newsom’s earlier predictions made five months prior. Newsom boasted of a $97.5 billion surplus, planning to use it to enhance health care, social equity, and education programs. However, more than two years later, California is now grappling with a severe budget deficit, prompting lawmakers to cut spending to prevent a financial disaster.
California’s “from hero to zero” journey
California projected a budget deficit of more than $70 billion in January. After months of planning, California Gov. Gavin Newsom released the revised budget plan with a “only” $27.6 billion budget shortfall for this year and next year’s projected $28.4 billion deficit. Many pieces of the puzzle about how California went from “hero to zero” are still missing. There are many questions, but just a few answers. Meanwhile, the startling reality of growing pressure due to increased prices following April’s minimum wage increase for some businesses, which is likely to further fuel inflation, confronts Californians.
Spending cuts, grants eliminated, and tax deductions revoked
Newsom’s administration managed to reach the just-below $28 billion budget deficit with huge spending cuts, eliminating many grants and tax deductions, and canceling many other programs and proposals pushed by the governor himself. But some others survived. Such is the case with the controversial Proposition 1 initiative that was put to voters in March, passing by a paper-thin margin of 50.2 to 49.8 percent. The expensive program is designed to help homeless individuals or those on the verge of homelessness. This initiative alone will cost the state more than $3 billion.
Celebrated as a huge success
Governor Newsom, a member of the Democratic party, has faced criticism after declaring that $3.3 billion would be allocated to aid California counties in addressing the homelessness issue. Skeptics have challenged his assertion that homelessness among veterans has decreased and his claim that California should serve as a model for other states. However, he did not provide any data to support the decrease in veteran homelessness.
During a speech on Tuesday, where he stood behind a podium displaying “treatments not tents,” Newsom stated: “We have a national model. What Proposition 1 did is that it reinforced that model, provided more resources to advance that model, and we’re very excited to get those dollars to work.”
What is Proposition 1
Proposition 1, also referred to as Prop. 1, is a mental health initiative championed by Newsom. It was narrowly approved by voters in March, with a close result of 50.2% in favor and 49.8% against. The goal of Prop. 1 is to expand access to programs that address behavioral and substance abuse issues, and to provide housing for veterans and others who are at risk of or currently experiencing homelessness. It also mandates counties to ensure that these essential services are available.
The public appearance sparked a lot of negative reactions
Tuesday’s appearance didn’t go as expected for Newsom. The backing of Prop 1 and unverified claims sparked a lot of debate online in a negative way.
“Newsom says California has a “national model” to address homelessness. This mfer is either delusional or insane,” user on X commented while sharing the video of Newsom’s speech.
Newsom says California has a "national model" to address homelessness 🤦♂️
This mfer is either delusional or insane
— Clown World ™ 🤡 (@ClownWorld_) May 15, 2024
The first comment below the post by the user @ThickShelledEgg shows video of an allegedly homeless person on a street believed to be somewhere in California. The user commented, “Ah yes, the Californian “national model.” All the other states are so jealous…”
Another user, Glenda, also commented under the post saying “We cannot let this guy become the leader of this nation. California is a wasteland.”
Democrats celebrate the Prop 1
When Prop. 1 was passed by California voters, Newsom’s fellow lawmakers lauded the success as a “historic moment” in the fight against homelessness. Sacramento Mayor Darrell Steinberg, the original author of the Mental Health Services Act, said: “Twenty years ago, I never could have dreamed that we would have the strong leadership we have today, committing billions and making courageous policy changes that question the conventional wisdom on mental health.”
