Commentary
As expected, Gov. Gavin Newsom’s revision of his January budget proposal, announced at 10 am May 12, projects a major deficit of $31.5 billion for fiscal year 2023-24, which begins on July 1. That’s $10 billion more than his January projection of a $22.5 billion deficit.
The May Revise, as it’s called in Sacramento parlance, flips the prior year’s surplus of almost $100 million—yielding a reversal of about $130 billion.
Meanwhile, our rival Texas is enjoying a revenue gusher with a $32.7 billion surplus. Even though the Lone Star State doesn’t have a state income tax, unlike California, where the top rate is 13.3 percent. Maybe attracting businesses and rich people makes more sense than repelling them?…