From the Sacramento Bee, October 3:
California’s longest-ever period of economic growth is slowing, Gov. Gavin Newsom said Thursday, warning that next year’s budget may not be as flush as this year’s.California has a tax well, funded by the rest of the world, that they dip into:
“You’re already seeing the plane land in terms of the the slowdown,” Newsom told reporters. “I think it’s going to reflect in a more sober look at next year’s budget.”
His 2020 budget blueprint is due in January
This year, he rolled out his budget plans in an exuberant press conference where he pledged to spend more on many of his top priorities. Much of that came to fruition in the final $215 billion budget he signed in June.
This year’s budget built up California’s reserves to more than $19 billion in anticipation of the next recession. Record surpluses allowed the governor to boost health care, housing and education spending and grant asks from many lawmakers, such as making the first two years of community college tuition-free for California students.
He also used the surplus to pay down debt, including making billions of dollars in extra payments to state pension funds to reduce long-term debts at CalPERS and CalSTRS....MORE
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That well may be going dry after the recent performance of some of the IPOs
