What’s Our State Surplus, Really? Checking In On The Budget

OAKLAND, CALIFORNIA - MAY 10: California Gov. Gavin Newsom (C) buttons his jacket as he prepares to take photo with state and local leaders during a press conference at The Unity Council on May 10, 2021 in Oakland, California. California Gov. Gavin Newsom announced a $100 billion economic recovery package for the state that would include a new round of $600 stimulus checks for low-income residents making up to $75,000 a year. An estimated two out of three Californians would receive the check and families with children would receive an additional $500. Newsom also announced a projected $75.7 billion budget surplus compared to last year's projected $54.3 billion shortfall. (Photo by Justin Sullivan/Getty Images)

Last week Governor Newsom touted that due to federal aid and the state’s surplus, the government would be able to foot the bill for a “$100 billion California Comeback Plan,” part of California’s $276 billion budget. But the Legislative Analyst’s Office has a different take on the numbers, putting the surplus at $38 billion.

Last week Governor Newsom touted that due to federal aid and the state’s surplus, the government would be able to foot the bill for a “$100 billion California Comeback Plan,” part of California’s $276 billion budget.

But the Legislative Analyst’s Office has a different take on the numbers, putting the surplus at $38 billion. That’s because Newsom is defining “surplus” differently and it does raise questions about the budget. So, what’s in it? What issues and political motivations are driving Newsom’s budget? And why is there a discrepancy in the surplus estimation?

Guests:

Gabe Petek, legislative budget analyst at the Legislative Analyst’s Office; he tweets

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Marisa Lagos, politics correspondent and co-host of the Political Breakdown podcast at the San Francisco NPR affiliate KQED; she tweets

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Dan Walters, long-time California politics observer with CALmatters, a nonprofit public interest publication; he tweets

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