Hot Take: Gavin’s Spending Spree, Not Tariffs, Sinks California Budget
Exposing Newsom’s Attempt to Shift Deficit Blame to President Trump
Governor Gavin Newsom's attempt to blame President Trump's tariff policies for California's $12 billion budget deficit is a shameful diversion, sidestepping criticism of his administration's profligate spending. Newsom claims that Trump's tariffs caused a "slump" that resulted in a $16 billion loss in state revenue, but this narrative falls apart under scrutiny. The stock market has rebounded from losses suffered due to announced tariffs, debunking his diversionary tactic. California's woes are a function of Newsom's budgets of extravagance, not trade policy.
Newsom's scapegoating is based on the mid-April tariffs placed on Mexico, Canada, and China, which he asserts triggered market volatility, affecting capital gains taxes that account for 25% of state revenues. However, market indices show no permanent downturn. California's multi-billion-dollar structural deficit predates Trump’s policies. The real issue is Newsom's spending binge, not tariffs.
His 2024 $306 billion budget contained a $38 billion deficit that relied on $16 billion in cuts and temporary tax hikes. The 2025 $322 billion plan, unveiled on Wednesday, continues to fund Medi-Cal for illegal immigrants—while preserving pet projects. The High-Speed Rail, a $128 billion train-less boondoggle, siphons $1 billion a year from cap-and-trade coffers. Homelessness programs have wasted $24 billion, and the homeless count increased by 6% since 2019. Water storage, despite bonds approved by voters, remains stalled. These aren't failures driven by tariffs but Newsom's misplaced priorities.
My friend, Republican strategist Rob Stutzman, was correct in the Sacramento Bee: “To blame tariffs for the deficit is like blaming a heart attack on the cheeseburger you ate last week, instead of the ones you’ve been eating for the last seven years.”
Newsom's budgets since 2019 raised spending by nearly 50%, outpacing revenue estimates in defiance of warning. The Governor’s fiscal mismanagement is a self-created crisis driven by progressive delusions that cost taxpayers big time. This tariff blame game is another reason he'd be disadvantaged as a presidential candidate. His dismal fiscal management—accumulating debt while pursuing extreme left-wing spending priorities —would turn off moderate swing voters who decide elections. Newsom's track record yields a lot of red ink and a track record of making promises he does not keep.
The “Afternoon Hot Take” is where I provide a write-up about something current in the news. I’m not sure if I’ll do it every weekday, but that’s an aspirational goal!